The use of an accounting method to make a decision: Discounted cash flow and net present value

Feb 3rd, 2012
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Texas A & M University
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Many of the management decisions involve pursuing an investment in the hope of making a profit in the form of additional net cash flows. One of the tools used in this capital budgeting decision making process is the discounted cash flow method. What is the net present value method? The net present value method (NPV) is one of the discounted cash flow methods in capital budgeting.....Essay includes calculation examples and definition explanations.

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