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Under the net present value method:

Looking for the answer to the question below related to Financial Management?

Under the net present value method:

 Options:

A. the interest rate is determined that equates inflows and outflows
B. the time value of money is not taken into account
C. inflows are discounted back to determine if they exceed outflows
D. the basic discount rate is the internal rate of return

 

The Correct Answer Is:

  • C. inflows are discounted back to determine if they exceed outflows

 

Conclusion

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