Answered: Which of the following investment…

Which of the following investment appraisal techniques does not involve discounting? a. NPV b. Discounted payback period c. ARR d. IRR

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 24Q: How does the size of the initial investment affect the internal rate of return on the net present...

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Question

Which of the following investment appraisal techniques does not involve discounting?

NPV

Discounted payback period

ARR

IRR

Definition Definition Calculation used to evaluate the investment and financing decisions that involve cash flows occurring over multiple periods. NPV is calculated as the difference between the present value of cash inflow and cash outflow. NPV is used for capital budgeting and investment planning as well as to compare similar investment alternatives.

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