All of the investment appraisal methods below use cash flows exclusively except:

Name: All of the investment appraisal methods below use cash flows exclusively except:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The accounting rate of return uses accounting profits rather than cash flows, making it the only method that does not exclusively use cash flows. The other methods listed (internal rate of return, net present value, and payback) all use cash flows in their calculations.

All of the Investment Appraisal Methods Below Use Cash Flows