The method of project selection that brings the time value of money into capital investment analysis is the:

Question

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The net present value method considers the time value of money by discounting future cash flows back to present value using a discount rate. This method is considered to be the most accurate and comprehensive method of evaluating capital investments as it accounts for the project's initial cost, expected cash inflows and outflows over time, and the time value of money. The accounting rate of return method and return on average investment method do not explicitly consider the time value of money, while the payback method does not account for all cash flows over the project's lifespan.

The Method of Project Selection That Brings the Time Value