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Examveda

In capital budgeting, a technique which is based upon discounted cash flow is classified as

A. net present value method

B. net future value method

C. net capital budgeting method

D. net equity budgeting method

Answer: Option A

Solution(By Examveda Team)

In capital budgeting, a technique which is based upon discounted cash flow is classified as net present value method. Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

This Question Belongs to Commerce >> Financial Management

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