Which of the following does not require time value of money computations in order to solve?

Question

Quizplus · Accepted Answer

Payback period is simply the time it takes for an investment to generate cash flows equal to the initial investment. It does not take into account the time value of money, making it the only option that does not require time value of money computations. The other options (net present value, profitability index, and internal rate of return) all involve calculating present values of future cash flows, which requires time value of money calculations.

Which of the Following Does Not Require Time Value of Money