Question

A multi-year capital project has an initial outlay of $100,000 and annual cash inflows of $40,000 for four years. Using a 10% discount rate, which capital budgeting technique should be used to evaluate the project's acceptance based on discounted cash flows?

A Payback period based on discounted cash flows
B Profitability index based on discounted cash flows
C Net present value based on discounted cash flows
D Accounting rate of return based on discounted cash flows
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