Which of the following capital budgeting methods does not use discounted cash flows?

Name: Which of the following capital budgeting methods does not use discounted cash flows?
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

Payback period does not use discounted cash flows. It simply calculates the length of time it takes for the initial investment to be recovered by the project's cash inflows. This method does not take into account the time value of money, unlike net present value, internal rate of return, and profitability index.

Which of the Following Capital Budgeting Methods Does Not Use