Answer:
Net present value
Step-by-step explanation:
The net present value is the amount invested in a project substracted from the after tax discounted cash flows.
A project with a higher NPV is usually more desirable when there are more than one projects to be chosen from.
Another capital budgeting method is the internal rate of return. The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
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