________ methods rely on measures of cash flows into and out of the firm.
A)Scoring model
B)Portfolio analysis
C)Real options pricing
D)Capital budgeting
E)Cost effectiveness

Question

Quizplus · Accepted Answer

Capital budgeting methods, such as net present value (NPV) and internal rate of return (IRR), rely on calculating the cash flows that will enter and leave the firm as a result of potential investments. These methods help determine whether a project or investment will generate positive cash flows and create value for the company.

________ Methods Rely on Measures of Cash Flows into and Out