Answer:
Hence, (b) Net present value is the correct option.
Explanation:
Net present value is the method that considers the time value of money for evaluating alternative capital expenditures. It is used to evaluate the current value of all future cash flows generated by the project including the initial value of the capital investment. It helps in identifying which project will turn out the best project in the future with greater profits.
Hence, (b) Net present value is the correct option.
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Options:
A. Accounting rate of return.
B. Net present value.
C. Payback period.
D. Cash flow method.
E. Return on average investment.
Hence, (b) Net present value is the correct option.
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(Hope this helps can i pls have brainlist (crown)☺️)
