The correct answer is C. Net Assets Method.
Capital budgeting is the process of planning and evaluating long-term investments. It involves identifying, analyzing, and selecting investment projects that will help the company achieve its long-term goals.
The time value of money is a concept that takes into account the fact that money has different values at different points in time. This is because money can be invested to earn a return, so a dollar today is worth more than a dollar in the future.
Sensitivity analysis is a technique that is used to assess the impact of changes in one or more variables on the outcome of a decision. This is done by calculating the outcome for a range of different values of the variables.
Cash flows are the inflows and outflows of cash that occur as a result of an investment project. They are used to calculate the net present value (NPV), internal rate of return (IRR), and payback period of an investment project.
The net assets method is a method of valuation that is used to determine the value of a company based on its assets. It is not used in capital budgeting because it does not take into account the future cash flows that the company is expected to generate.