Net present value and the payback period are examples of discounted cash flow methods used in capital investment decisions.

Name: Net present value and the payback period are examples of discounted cash flow methods used in capital investment decisions.
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Net present value (NPV) is a discounted cash flow method, but the payback period is not; it simply calculates the time it takes for an investment to generate an amount of cash equal to the initial investment, without discounting future cash flows.

Net Present Value and the Payback Period Are Examples of Discounted