superiority of cash flow techniques in investment appraisalForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › superiority of cash flow techniques in investment appraisalThis topic has 1 reply, 2 voices, and was last updated 7 years ago by Ken Garrett.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts February 10, 2017 at 10:41 am #371848 Vipin MemberTopics: 151Replies: 374☆☆☆☆why is that cash flow techniques like NPV, IRR is considered superior to methods like ARR which considers annual operating profit?One reason I could think of is that, a profit can be manipulated by managers. February 10, 2017 at 4:12 pm #371866 Ken GarrettKeymasterTopics: 10Replies: 10551☆☆☆☆☆The other main reason is that NPV and IRR take into account the time value of money. That concept is the foundation of discounting.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In