The Capital Budgeting Method Which Calculates the Expected Monetary Gain

question 110

Multiple Choice

The capital budgeting method which calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time using the required rate of return is the ________.

• A) payback method
• B) accrual accounting rate-of-return method
• C) sensitivity method
• D) net present value method

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