A capital budgeting method that takes into consideration the time value of money is the
A) annual rate of return method.
B) return on stockholders' equity method.
C) cash payback technique.
D) internal rate of return method.

Question

Quizplus · Accepted Answer

The internal rate of return method is a capital budgeting technique that takes into consideration the time value of money. It calculates the interest rate at which the project's net present value becomes zero, indicating the project's profitability. The other methods listed do not consider the time value of money.

A Capital Budgeting Method That Takes into Consideration the Time