When considering new projects some business owners want to knowhow quickly they will earn their money back (and use the Payback(PB) method or the discounted payback (DPB) method). Others want toknow what the rate of return on the project will be and use theInternal Rate of Return (IRR) method). Still others want to knowhow the project will affect the value of their business (and usethe Net Present Value (NPV) method).
Identify and describe the strengths and weaknesses of each ofthese four methods.
Which of them would you recommend as the best method? Explainwhy.
