Capital investment decisions are based on accurate analysis of cash flows in a business. Managers can choose from several analytical techniques to analyze cash flows. Some techniques take into account the time value of money and some do not.

• Briefly describe 2 analytical techniques based on the time value of money concepts.
• Briefly describe 2 analytical techniques which are not based on the time value of money concepts.
• Describe what you consider to be the top 2 advantages and 2 disadvantages of each technique and provide an example to support your top advantage of each method.

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