A capital budgeting tool that management can use to summarise the difference in the future net cash inflows from an intangible asset at two different points in time is referred to as:

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The net present value (NPV) method is used to determine the difference between the present value of cash inflows and the present value of cash outflows over a period of time. This tool is used to determine the profitability of an investment or project. In this case, the NPV method can be used to summarise the difference in the future net cash inflows from an intangible asset at two different points in time. The payback method calculates the amount of time it takes for an investment to pay for itself, but it does not take into account the time value of money. The accrual accounting rate-of-return method measures the profitability of an investment based on accounting measures, but it doesn't take into account the time value of money. Sensitivity analysis is a technique used to determine the effect of changes in variables on the NPV of a project or investment.

A Capital Budgeting Tool That Management Can Use to Summarise