Capital budgeting methods which incorporate the time value of money include the ________.

Name: Capital budgeting methods which incorporate the time value of money include the ________.
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Question

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The net present value method incorporates the time value of money by discounting the future cash flows to their present value using a discount rate. The other options, accounting rate of return, average rate of return, and payback method, do not explicitly take into account the time value of money.

Capital Budgeting Methods Which Incorporate the Time Value of Money