Which of the following is a discounted cash flow (DCF)approach to capital budgeting decision analysis?
I.Profitability index
II.Internal rate of return
III.Net present value
IV.Payback period

Question

Quizplus · Accepted Answer

The discounted cash flow (DCF) approaches to capital budgeting decision analysis include the Profitability Index, Internal Rate of Return, and Net Present Value. These methods involve discounting future cash flows to their present value to evaluate the profitability of investments. The Payback Period is not a DCF method as it does not consider the time value of money.

Which of the Following Is a Discounted Cash Flow (DCF)approach