Nachiket posted an Question
July 06, 2020 • 21:48 pm 30 points
  • UGC NET
  • Commerce

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

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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  • comment-profile-img>
    Ronak kumari upadhyay

    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

  • Nachiket Gharat

    because only ARR is non discounted technique in question

  • Nachiket Gharat

    You are right madam... I think option C is right answer

  • Priya gulani best-answer

    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)

  • Nachiket Gharat

    Sir, But ARR is non discounting technique.. and other three are discounted techniques

  • Nachiket Gharat

    Sir Option C ) accounting rate of return is also non discounted cash flow technique

    eduncle-logo-app

    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.

    eduncle-logo-app

    what is right answer for this question option B or option C

    eduncle-logo-app

    It is option c

    eduncle-logo-app

    thank you..

  • comment-profile-img>
    Ronak kumari upadhyay

    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 project and projected benefits for its calculation. Hope it is clear to you.

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