Topic: Cash Flow Analysis Financial or capital investment opportunities can be compared and evaluated using a number of cash flow analysis tools. Longer term analyses should use discounted cash ow methodologies and consider the time value of money. For each statement, choose the best/correct response from the drop down list. Each match is worth one half (0.5) mark. 7 v Does not considerthe full economic value and return A. Discounted Payback Period [DPP) 7 v Does not dlsti nguish between different project sizes and durations B, Net Present Value (NPV) _ v Favours low risk short-term lnvestments C. Profitability Index (Pl) , v Used to rankdlerent sized investments and returns , v Relates economic return with level ofor'lginel investment _ v Can evaluate least cost or negative cash flow alternatives