Which of the following does NOT incorporate discounted cash flow (DCF) valuation in its calculation?
A) Discounted payback
B) Profitability index
C) Net present value
D) Internal rate of return
E) Average accounting return

Question

Quizplus · Accepted Answer

Average accounting return (AAR) does not use discounted cash flow valuation. It is based on accounting information, typically using average net income divided by average book value.

Which of the Following Does NOT Incorporate Discounted Cash Flow