Which of the following methods of evaluating capital investment projects incorporates the time value of money concept?
I. Payback Period, II) Discounted Payback Period,
III. Net Present Value (NPV),
IV. Internal
Rate of Return
A) I, II, and III only
B) II, III, and IV only
C) III and IV only
D) I, II, III, and IV

Question

Quizplus · Accepted Answer

The Discounted Payback Period, Net Present Value (NPV), and Internal Rate of Return (IRR) all incorporate the time value of money, unlike the simple Payback Period.

Which of the Following Methods of Evaluating Capital Investment Projects