Which of the following investment rules does not use the time value of the money concept?
A) Net present value
B) Internal rate of return
C) The payback period
D) All of the above use the time value concept

Question

Quizplus · Accepted Answer

The payback period does not use the concept of time value of money. It only calculates the amount of time required to recover the initial investment. However, net present value and internal rate of return both use time value of money to assess the present value of future cash flows.

Which of the Following Investment Rules Does Not Use the Time