Which of the following methods is not one used by management in analysing the expected results of capital budgeting decisions?

Question

Quizplus · Accepted Answer

The future-value cash-flow method is not typically used in analyzing capital budgeting decisions. Common methods include the payback method, discounted cash-flow method (which considers the present value of future cash flows), and the accrual accounting rate-of-return method. The future-value approach focuses on the future value of cash flows, which is not a standard approach for evaluating the viability of capital investments, as these decisions are more concerned with understanding the present value of future cash flows or the time it takes to recoup the initial investment.

Which of the Following Methods Is Not One Used by Management