Which method in a capital budgeting is based on the discounted cash flow?
A)net equity budgeting method
B)net capital budgeting method
C)net future value method
D)net present value method

Question

Quizplus · Accepted Answer

The Net Present Value (NPV) method is based on the discounted cash flow technique. It calculates the present value of the cash flows generated by a project, discounted at the cost of capital, to determine the project's value to the company.

Which Method in a Capital Budgeting Is Based on the Discounted