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

Correct Answer: net present value method

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.

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Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as

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