In making capital budgeting decisions,the discounted cash flow method aids in evaluating investments involving cash flows over time where there is a significant time difference between cash payment and receipt.Analysts use which two discounted cash flow methods?

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The two discounted cash flow methods typically used in capital budgeting decisions are the net present value (NPV) method and the internal rate of return (IRR) method. The NPV method calculates the present value of future cash flows discounted at a specified rate, while the IRR method calculates the discount rate at which the present value of cash inflows equals the present value of cash outflows. These methods provide a more accurate picture of the true profitability of an investment, taking into account the time value of money.

In Making Capital Budgeting Decisions,the Discounted Cash Flow Method Aids