Discounted cash flow techniques of analysis include
A) return on investment and net present value methods.
B) net present value and investment outlay valuation methods.
C) accounting ratio analysis and internal rate of return methods.
D) net present value and internal rate of return methods.

Question

Quizplus · Accepted Answer

Discounted cash flow techniques include calculation of net present value (NPV) and internal rate of return (IRR). Option A is incorrect as return on investment is not a discounted cash flow technique. Option B is incorrect as investment outlay valuation is not a commonly used discounted cash flow technique. Option C is incorrect as accounting ratio analysis is not a discounted cash flow technique.

Discounted Cash Flow Techniques of Analysis Include