Discounted Cash Flow Techniques of Analysis Include

question 16

Multiple Choice

Discounted cash flow techniques of analysis include

• A) return on investment and net present value methods.
• B) net present value and investment outlay valuation methods.
• C) accounting ratio analysis and internal rate of return methods.
• D) net present value and internal rate of return methods.

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Definitions:

Financial Ratio

A numerical comparison derived from a company's financial statements, used to evaluate aspects of its operational efficiency, liquidity, profitability, and solvency.

Nonrecurring Items

Expenses or incomes that appear infrequently or irregularly on the financial statements, not expected to recur in the foreseeable future.

Revenue Recognition

An accounting process detailing how and when revenue is earned and reported, influencing financial statements.

Bond Interest Earned

The income received by bondholders for their investment, typically paid semi-annually.