ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    Which capital budgeting technique ignores the time value

    of money?
    A Net Present Value Correct Answer Incorrect Answer
    B Internal Rate of Return Correct Answer Incorrect Answer
    C Payback Period Correct Answer Incorrect Answer
    D Discounted Payback Period Correct Answer Incorrect Answer

    Solution

    The simple Payback Period method calculates the time needed to recover initial investment without considering the time value of money.

    Practice Next
    More Capital Budgeting Questions
    ask-question