Examples of sophisticated capital budgeting techniques include all of the following EXCEPT
A) internal rate of return.
B) payback period.
C) annualized net present value.
D) net present value.

Question

Quizplus · Accepted Answer

The payback period is not considered a sophisticated capital budgeting technique as it does not consider the time value of money and only focuses on the length of time required to recover the initial investment. The other options, internal rate of return, annualized net present value, and net present value all take into account the time value of money and are more comprehensive methods for capital budgeting.

Examples of Sophisticated Capital Budgeting Techniques Include All of the Following