Examlex
Which statement is incorrect?
Net Present Value
A method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and the present value of cash outflows.
Subjective Approach
A decision-making process based on personal opinions, interpretations, points of view, emotions, and judgment.
Discount Rates
The interest rate used to discount future cash flows to present value, often reflective of the risk associated with the cash flows.
Weighted Average
A computation that considers the different significance levels of the figures in a dataset.
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