Time value of money should be ignored in capital budgeting techniques to make accurate decisions.

Question

Quizplus · Accepted Answer

Time value of money is an important concept in capital budgeting techniques as it helps in determining the present value of future cash flows. Ignoring time value of money can lead to inaccurate decisions as it does not consider the impact of inflation and the opportunity cost of money over time. Therefore, it is essential to consider time value of money in capital budgeting techniques to make accurate decisions.

Time Value of Money Should Be Ignored in Capital Budgeting