Which of the following figures of merit does not directly take into consideration the time value of money?
I.Payback period
II.Internal rate of return
III.Net present value (NPV)
IV.Accounting rate of return
A) IV only
B) I & III only
C) II & III only
D) I & II only
E) I & IV only
F) I, II, III, and IV

Question

Quizplus · Accepted Answer

The payback period and accounting rate of return do not consider the time value of money, whereas internal rate of return and net present value do.

Which of the Following Figures of Merit Does Not Directly