Which methods of evaluating a capital investment project ignore the time value of money?
A)Net present value and accounting rate of return.
B)Accounting rate of return and internal rate of return.
C)Internal rate of return and payback period.
D)Payback period and accounting rate of return.
E)Net present value and payback period.

Question

Quizplus · Accepted Answer

Payback period and accounting rate of return ignore the time value of money as they do not take into account the present value of future cash flows.

Which Methods of Evaluating a Capital Investment Project Ignore the Time