Which of the following capital budgeting methods ignores the time value of money?
A) Internal rate of return
B) Net present value
C) Profitability index
D) Payback period

Name: Which of the following capital budgeting methods ignores the time value of money? A) Internal rate of return B) Net present value C) Profitability index D) Payback period
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Question

Quizplus · Accepted Answer

Payback period only considers the amount of time it will take to recover the initial investment without considering the time value of money.

Which of the Following Capital Budgeting Methods Ignores the Time