The correct answer is: B. Within discount cash flow method.
Net present value (NPV) is a capital budgeting method that calculates the present value of a project’s future cash flows, and compares it to the project’s initial investment. A positive NPV indicates that the project is expected to generate a profit, while a negative NPV indicates that the project is expected to lose money.
NPV is a discounted cash flow (DCF) method, which means that it takes into account the time value of money. The time value of money is the idea that money today is worth more than money in the future, because you can earn interest on money today. DCF methods discount future cash flows to their present value, which makes them comparable to the project’s initial investment.
Non-discount cash flow methods, on the other hand, do not take into account the time value of money. This means that they are not as accurate as DCF methods, and they may not give you a realistic picture of a project’s profitability.
In conclusion, NPV is a popular method that falls within the discount cash flow method. It is a more accurate method than non-discount cash flow methods, and it can help you make better decisions about whether or not to invest in a project.