Nachiket Gharat Asked a Question
July 6, 2020 4:18 pmpts 30 pts
Discounted cash flow criteria for investment appraisal does not include (A) B) (D) benefit cost ratio Net present value Accounting rate of return internal rate of return
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  • Priya gulani thankyou
    Benefit cost ratio is also known as Profitability Index or Desirability factor...formula... Present value of cash inflow ÷Present value of cash outflow (initial cash outlay)
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  • Nachiket Gharat
    Sir Option C ) accounting rate of return is also non discounted cash flow technique
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    Priya gulani
    Yes uv r right rest three options take into account the time value of money...but accounting rate of return doesn't take time value of money into consideration.
  • रौनक
    option 'B' will be the right answer as all the other methods use discounted cash flow and benefit cost ratio doesn't use discounted cash flow. This only takes the projected cost of...
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  • Nachiket Gharat
    Sir, But ARR is non discounting technique.. and other three are discounted techniques
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  • Nachiket Gharat
    You are right madam... I think option C is right answer
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  • Nachiket Gharat
    because only ARR is non discounted technique in question
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  • रौनक
    Yeah 'c' could also be the ans as 'c' is traditional method of investment apprasial And some authora say benefit cost ratio is a extention of net present value
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