Which of the following capital budgeting measures requires the discounting of an investment's future cash flows?

Question

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Net present value requires the discounting of an investment's future cash flows to their present value in order to determine the profitability of the investment. Payback period simply measures the time it takes for an investment to recoup its initial cost, without taking into account the time value of money. Return on average investment and accounting rate of return both use accounting measures, such as average income or accounting profits, to evaluate the profitability of an investment.

Which of the Following Capital Budgeting Measures Requires the Discounting