Which of the following capital budgeting techniques might not consider the terminal value of a project?
A)Net Present Value
B)Internal Rate of Return
C)Profitability Index
D)Payback Period

Question

Quizplus · Accepted Answer

The Payback Period technique does not consider the terminal value of a project. It simply calculates the amount of time it takes for a project to recoup its initial investment. The other three techniques (Net Present Value, Internal Rate of Return, and Profitability Index) take into account the time value of money and the cash flows of the project, including any terminal or salvage values.

Which of the Following Capital Budgeting Techniques Might Not Consider