The rate of return calculations ignores the time value of money, but the payback period does include consideration of the time value of money.

Name: The rate of return calculations ignores the time value of money, but the payback period does include consideration of the time value of money.
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

The statement is incorrect. The rate of return calculation does include consideration of the time value of money, while the payback period ignores it.

The Rate of Return Calculations Ignores the Time Value of Money