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CTP · Question #341

(Topic 4) Which of the following capital budgeting methods ignores the time value of money?

The correct answer is A. Payback period. See the full explanation below for the reasoning.

Question

  • (Topic 4)

Which of the following capital budgeting methods ignores the time value of money?

Options

  • APayback period
  • BProfitability Index
  • CNet Present Value
  • DInternal Rate of Return

How the community answered

(24 responses)
  • A
    79% (19)
  • B
    4% (1)
  • C
    13% (3)
  • D
    4% (1)

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