Neither the payback period nor the ARR capital budgeting method recognizes the time value of money.

Name: Neither the payback period nor the ARR capital budgeting method recognizes the time value of money.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Payback period and ARR do not take into account the time value of money, which means they do not consider the fact that money received in the future is worth less than money received today due to inflation and other factors.

Neither the Payback Period nor the ARR Capital Budgeting Method