Answer:
(NPV) Net present value method is the most effective capital budgeting method
Explanation:
we know here
initial after minus tax cost = $5,000,000
after minus tax cash flows in 1st year = $1,800,000
and in 2nd year = $2,900,000
and in 3rd year = $2,700,000
and 4th year is = $2,300,000
so here cash outflows even after the initial outlay in year 0
so we not use here IRR
so that best and most most effective capital budgeting method is NPV net present value
we use it NPV
