Which of the Following Is TRUE of Discounted Cash Flow

question 5

Multiple Choice

Which of the following is TRUE of discounted cash flow methods like NPV and IRR?

• A) They use simple interest calculations.
• B) They use net income amounts rather than cash flows.
• C) They focus on the payback period.
• D) They incorporate compound interest calculations.

---

Definitions:

Acoustic

Pertaining to sound or the sense of hearing.

Decibel

A unit of measurement used to express the intensity of sound or the power level of an electrical signal by comparing it with a given level on a logarithmic scale.

Myringotomy

A surgical procedure to create an opening in the eardrum to drain fluid or relieve pressure.

Otoplasty

A surgical procedure to change the shape, position, or size of the ears.