Examlex
Which of the following transactions does not affect cash during a period?
Payback Period
The length of time it takes for an investment to recover its initial outlay of cash, through income or savings.
Profitability Index
A calculation that determines the relationship between the costs and benefits of a proposed project through a ratio derived from present value of future cash flows divided by initial investment.
Net Present Value
An analysis that assesses the worth of a project or investment by comparing all incoming and outgoing cash flows against a discount rate.
Internal Rate Of Return
A metric used in capital budgeting to estimate the profitability of potential investments.
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