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Traditional Capital Budgeting Techniques
These techniques are usually very simple and easily catchable. But the fundamental drawback of these methods is that they don't consider the time value of money. But in many industries where an instant decision is to be taken, these techniques offer the quicker way out. There are generally two techniques under this category of methods. That is - Accounting rate of return and Payback period.
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Q. What is Cash Flow Criteria? Cash Flow Criteria: - Cash flow criteria are on the basis of cash flows rather than accounting profit. Cash flow methods are separated into two s
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