Which one of the following methods of project analysis is defined as computing the value of a project based on the present value of the project's anticipated cash flows?
A) Constant dividend growth model
B) Discounted cash flow valuation
C) Average accounting return
D) Expected earnings model
E) Internal rate of return

Question

Which one of the following methods of project analysis is defined as computing the value of a project based on the present value of the project's anticipated cash flows? 
A) Constant dividend growth model 
B) Discounted cash flow valuation 
C) Average accounting return 
D) Expected earnings model 
E) Internal rate of return

Quizplus · Accepted Answer

Discounted cash flow valuation is the method of analyzing a project by calculating the present value of the anticipated cash flows. The other methods listed do not involve the calculation of present value.

Which One of the Following Methods of Project Analysis Is