Final answer:
The option that does NOT incorporate discounted cash flow (DCF) valuation is E. Average accounting return.
Step-by-step explanation:
The option that does NOT incorporate discounted cash flow (DCF) valuation in its calculation is E. Average accounting return.
Discounted payback, profitability index, net present value, and internal rate of return are all methods that use DCF valuation to assess the value of an investment. However, the average accounting return does not involve discounted cash flows.