Which of the following capital budgeting methods calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time using the required rate of return?

Question

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The net present value (NPV) method calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time using the required rate of return. The other options (accrual accounting rate-of-return method, payback method, and sensitivity method) do not involve discounting cash flows to the present point in time using the required rate of return to calculate expected monetary gain or loss from a project.

Which of the Following Capital Budgeting Methods Calculates the Expected