In a program, management would like to consider the present value for each year a program creates a return on investment. What program selection method is management using?

Net Present Value (NPV) calculates the present value of expected cash inflows for each year a program generates a return on investment, then subtracts the present value of costs to determine overall value. By discounting year-by-year cash flows, NPV explicitly accounts for the time value of money across the full program duration, which matches the scenario of considering present value for each year of ROI.

Present Value calculates the current worth of a single future cash flow at a specific point in time, not the aggregated discounted value across multiple years.

Internal Rate of Return (IRR) is the discount rate at which NPV equals zero; it does not calculate present value for each individual year of returns.

Time Value of Money is the foundational financial concept that money available today is worth more than the same amount in the future - it is a principle, not a program selection method.