Question

Which capital budgeting technique is used on an exclusionary basis to prevent investing time and resources investigating using more complex techniques

Answer 1

Answer:

"Net Present Value" is the right approach.

Explanation:

A method used to determining or calculating the gaps between the current valuation of initial investment as well as the outputs of something like development or possible expenditure is termed as net present value.

The formula which is used to find the NPV is given below:

⇒ $NPV=\frac{Cash \ flow}{(1+i)^t}-initial \ investment$

here,

• i = Return required
• t = No. of periods