The payback period and accounting return on investment techniques
A)recognize the economic life of a project.
B)ignore the time value of money.
C)consider only the return for the first year of the investment.
D)are more difficult to use than the net present value method.

Question

Quizplus · Accepted Answer

The payback period and accounting return on investment techniques do not take into account the time value of money, which is a key concept in evaluating the worth of future cash flows.

The Payback Period and Accounting Return on Investment Techniques