A capital budgeting decision method that considers the time value of money is the:
A)accounting rate of return method.
B)return on stockholders' equity method.
C)cash payback method.
D)internal rate of return method.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) method considers the time value of money by discounting future cash flows to determine the rate at which the net present value of an investment is zero.

A Capital Budgeting Decision Method That Considers the Time Value