Neither the payback period nor the accounting rate of return methods of evaluating investments considers the time value of money.

Name: Neither the payback period nor the accounting rate of return methods of evaluating investments considers the time value of money.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Both the payback period and accounting rate of return methods only take into account the initial investment and future cash flows without adjusting for the time value of money.

Neither the Payback Period nor the Accounting Rate of Return