Question

Under_____if the present value of future cash flow is higher than the initial cash outlay, the project is selected otherwise rejected
1)net present value method 2)accounting rate of return
method
3)payback period method
4)non of these​

Answer 1

Answer:

acounting rate of return method

___________

Answer 2

Under_____if the present value of future cash flow is higher than the initial cash outlay, the project is selected otherwise rejected

1) net present value method

2) accounting rate of return method

3) payback period method

4) none of these​

The correct answer is :

1) net present value method

Explanation ⦂

Under ___net present value method __ if the present value of future cash flow is higher than the initial cash outlay, the project is selected otherwise rejected

Present value fund refers to the difference between the present value of cash inflows and the present value of cash outflows over a period of time. It is used in capital budgeting and investment planning to analyze the potential return of a projected investment or project.

Net present value is the result of calculations used to find the present value from a future stream of payments.

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