GENERAL KNOWLEDGE

GK

ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Discounted cash flow criteria for investment appraisal does not include
A
Benefit cost ratio
B
Net present value
C
Internal rate of return
D
Accounting rate of return
Explanation: 

Detailed explanation-1: -Discounted cash flow (DCF) refers to a valuation method that estimates the value of an investment using its expected future cash flows. DCF analysis attempts to determine the value of an investment today, based on projections of how much money that investment will generate in the future.

Detailed explanation-2: -Past cash flows and financing cash flows are excluded. Ungeared analysis is used for project appraisal and can also be used to value a whole enterprise.

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