The payback period ignores the ________ value of money but offers a glimpse at the potential risk associated with a project.
A) real
B) invested
C) future
D) time

Question

Quizplus · Accepted Answer

The payback period ignores the time value of money, which refers to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. However, it is still useful for assessing the risk of a project by indicating how long it will take to recoup the initial investment.

The Payback Period Ignores the ________ Value of Money but Offers