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Management · Q131

Management Accounting

Graduate and Post Graduate · Management · question 131

Q131

Cash flows method, used by net present value method and internal rate of return are

A.
vertical cash flows
B.
discounted cash flows
Answer
C.
lean cash flows
D.
future cash flows

Answer: Option B

Solution

Answer: Option B
Solution:
Cash flows method, used by net present value method and internal rate of return are discounted cash flows. Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows.