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Which of the Following Choices Correctly Depicts Whether Discounted Cash

Question 32

Multiple Choice

Which of the following choices correctly depicts whether discounted cash flows are used by the method noted when evaluating long-term investments?  Net  Present Value  Internal Rate  of Return  Accounting  Rate of Return 1 No  No  Yes 2 Yes  No  Yes 3 Yes  No  No 4 Yes  Yes  No 5 Yes  Yes  Yes \begin{array} { | l | c | c | c | c | c |c| } \hline & &\begin{array} { c } \text { Net } \\\text { Present Value }\end{array} & \begin{array} { c } \text { Internal Rate } \\\text { of Return }\end{array} & &\begin{array} { c } \text { Accounting } \\\text { Rate of Return }\end{array} \\\hline 1 && \text { No } & \text { No } & &\text { Yes } \\\hline 2 && \text { Yes } & \text { No } & &\text { Yes } \\\hline 3 && \text { Yes } & \text { No } & & \text { No } \\\hline 4 && \text { Yes } & \text { Yes } & & \text { No } \\\hline 5 && \text { Yes } & \text { Yes } & & \text { Yes } \\\hline\end{array}


A) 1
B) 2
C) 3
D) 4
E) 5

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