The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as
(1) methods that ignore present value and
(2) present value methods.

Question

The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as 
(1) methods that ignore present value and 
(2) present value methods.

Quizplus · Accepted Answer

The methods for evaluating capital investment proposals indeed fall into two main categories: those that do not consider the time value of money (ignore present value) and those that do (present value methods), such as the Net Present Value (NPV) and Internal Rate of Return (IRR) methods.

The Methods of Evaluating Capital Investment Proposals Can Be Grouped