Small Business Management Study Set 2
Quiz 22: Managing the Firms Assets
Discounted Cash Flow Techniques Consider the Time Value of Money
Discounted cash flow techniques consider the time value of money.
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In using the net present value method, one does not consider the time value of money.
The net present value method discounts future after-tax profits back to the present day.
The internal rate of return method estimates the rate of return that can be expected from a contemplated investment.
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