General Studies · Capital Budgeting
Which of the following capital budgeting techniques measures the difference between the present value of future cash inflows and the present value of cash outflows?
- 1Internal Rate of Return (IRR)
- 2Accounting Rate of Return (ARR)
- 3Net Present Value (NPV)✓
- 4Payback Period
Correct answer
Net Present Value (NPV)
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