The payback period and accounting return on investment techniques
A) recognize the economic life of a project.
B) ignore the time value of money.
C) consider only the return for the first year of the investment.
D) are more difficult to use than the net present value (NPV) method.

Question

Quizplus · Accepted Answer

The payback period and accounting return on investment techniques ignore the time value of money, focusing instead on how quickly an investment can be recouped or the accounting return without adjusting for the time value of money.

The Payback Period and Accounting Return on Investment Techniques