GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Present Value of all inflows are cumulated in
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Order of Time
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Order of Cash
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Order of Sales
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Order of Investment
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Explanation:
Detailed explanation-1: -The present values of all inflows are cumulated in order of time. The time period at which the cumulated present value of cash inflows equals the present value of cash outflows is known as discounted pay back period. The project which gives a shorter discounted pay back period is accepted.
Detailed explanation-2: -Excess present value index can be defined as the total present value of future net cash inflows divided by the total cash outflow.
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