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Pakapol Lertrutdachakul
on Nov 12, 2024

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Which method of evaluating capital investment proposals uses present value concepts to compute the rate of return from the net cash flows?

A) internal rate of return method
B) cash payback method
C) net present value method
D) average rate of return method

Internal Rate of Return Method

A capital budgeting technique used to evaluate the profitability of investments or projects, determining the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Present Value Concepts

Financial principles that determine the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

  • Assess capital investment propositions through the utilization of net present value and internal rate of return methodologies.
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Naomi LutuanguNov 14, 2024
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