_____ is an approach that compares two or more alternatives by computing the total impact on cash flows of each alternative and then converting these total cash flows to their present values.

Question

Quizplus · Accepted Answer

The approach described in the question is known as the Total Project Approach, where all cash flows of each alternative are compared by converting them to their present value. The differential approach compares only the differences in cash flows between alternatives, the payback approach focuses only on the time it takes to recover the initial investment, and the sensitivity approach analyzes the effects of changes in specific variables on the cash flows.

_____ Is an Approach That Compares Two or More Alternatives