Learning Objectives: Evaluate the acceptability of an investment project using the net present value method. Evaluate the acceptability of an investment project using the internal rate of return method. Evaluate an investment project that has uncertain cash flows. Rank investment projects in order of
Least Cost Decision
In situations such as these, where no revenues are involved, the most desirable alternative will be the one that promises the least total cost from the present value perspective. Hence, these are known as least cost decisions.