Zimmerman (2014) states that “A fundamental law of finance is that a dollar today is worth more than a dollar tomorrow.†Net present value (NPV) analysis is a means to “compare alternatives involving cash flows occurring at different points in time.†However, NPV (or discounted cash flow) is not the only method of evaluation. Compare and contrast the other methods of determining the value of investment opportunities, including characteristics, limitations, and advantages of each. Why are depreciation tax shields important in evaluating future cash flows? When does it make sense to discontinue a product? Support your statements with evidence from the Required Studies and your research. Cite and reference your sources in APA style. References Zimmerman, J. (2014). Budgeting. In Accounting for Decision Making and Control (8th ed., pp. 219-282). New York: McGraw-Hill. Solution There are many methods for analysing alternatives. They are Analysing the methods, the net present value method is the most widely used for decision making. Depreciation tax shield: Depreciation is non-cash expense and hence, while computing the net cash flows it is added back to the profit after tax. .