Question

The capital budgeting method that takes into account both the size of the original investment and the discounted cash flows is the Group of answer choices

Answer 1

Answer:

Option D (profitability index) is the correct choice.

Explanation:

Options aren't mentioned in the issue above. Please find the full query attachment here.  

Capital budgeting seems to be the mechanism whereby the creditors assess the value of a future investment project. This corresponds to something like the timeframe by which the planned project can produce adequate income to regain the original investment.

The 3 most prevalent frameworks to contractor choosing are given below:

• Payback period.
• Net present value.
• Internal rate of return.

Some other choices have no relation with the specified scenario. So that the option here is just the appropriate ones.