Failure to recognize the time value of money is a weakness of
A) the internal rate of return method.
B) the accounting return on investment technique.
C) the net present value method.
D) discounted cash flow techniques.

Question

Quizplus · Accepted Answer

The accounting return on investment technique does not consider the time value of money, making it a weakness. The other methods (internal rate of return, net present value, and discounted cash flow) all take into account the time value of money.

Failure to Recognize the Time Value of Money Is a Weakness