Q493
In capital budgeting, a technique which is based upon discounted cash flow is classified as
A.
net present value method
AnswerB.
net future value method
C.
net capital budgeting method
D.
net equity budgeting method
Answer: Option A
Solution
Answer: Option A
Solution:
In capital budgeting, a technique which is based upon discounted cash flow is classified as net present value method. Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.