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12 January, 16:12

Which methods of evaluating a capital investment project use cash flows as a measurement basis?

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  1. 12 January, 16:32
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    The method of evaluating a capital investment project that use cash flows as a measurement basis are: Payback period, internal rate of return, and net present value.

    - PAyback period, used to determine how much asset is back after the initial saving

    - internal rate of return, Used to measure potential profit from an investment

    - Net present value, used to determine the worth of all company's assets
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