Which of the following is TRUE of discounted cash flow methods like NPV and IRR?

Name: Which of the following is TRUE of discounted cash flow methods like NPV and IRR?
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Question

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Discounted cash flow methods like NPV and IRR incorporate compound interest calculations, which take into account the time value of money. Simple interest calculations are not used. Net cash flows, not net income, are used in these methods. While payback period may be a consideration, it is not the primary focus of these methods.

Which of the Following Is TRUE of Discounted Cash Flow