Wk 3 Acct

Discussion 1: Shared Practice: Evaluation Methods

There are a number of different methods, such as discounted cash flow, net present value (NPV), accounting rate of return (ARR), payback, and internal rate of return (IRR),that can be used to evaluate whether an organization should approve a particular project. Each method has specific advantages and disadvantages and certain scenarios could benefit from the use of a particular method.

To prepare for this Discussion, “Shared Practice: Evaluation Methods,” review the evaluation methods utilized by organizations for decision making. Consider your professional experience, knowledge gained from the resources, and/or additional research.

By Day 3

Post the following:

• Evaluate the advantages and disadvantages of alternatives to discounted cash flows.
• Describe a scenario in which you would recommend one method as being more effective than others. Draw from your professional experience and/or additional research and provide a rationale for your recommendation.

By Day 5

Respond to two or more of your colleagues in one or more of the following ways:

• Provide insights or contrasting observations regarding the alternatives to discounted cash flows from reading their posts.
• Comment on a scenario presented and provide additional insight into the method presented and/or propose a different method for making the decision along with your rationale for choosing that method.

Support your comments with your own experiences, the weekly resources, and/or additional research.