Unlike the internal rate of return method, the present and annual worth computations
A)are more complicated.
B)do not account for the time value of money.
C)give a direct measure of the profit provided by a project.
D)discriminate against long-term projects.
E)do not take into account expected service life of a project.

Question

Quizplus · Accepted Answer

Present and annual worth computations directly measure the profit provided by a project by converting all cash flows to a common point in time, allowing for a clear comparison of the profitability or cost-effectiveness of different projects.

Unlike the Internal Rate of Return Method, the Present and Annual