Which capital budgeting technique(s)measure all expected future cash inflows and outflows as if they occurred at a single point in time?
A)net present value
B)internal rate of return
C)payback
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

Both net present value and internal rate of return measure all expected future cash inflows and outflows as if they occurred at a single point in time. Payback, on the other hand, only considers the length of time it takes for the initial investment to be recovered, and does not take into account all future cash flows. Therefore, the best choice would be either net present value or internal rate of return, or both.

Which Capital Budgeting Technique(s)measure All Expected Future Cash Inflows and Outflows