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    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.

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