A Capital Budgeting Decision Method That Considers the Time Value

question 71

Multiple Choice

A capital budgeting decision method that considers the time value of money is the:

• A)accounting rate of return method.
• B)return on stockholders' equity method.
• C)cash payback method.
• D)internal rate of return method.

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Definitions:

Think Carefully

The act of considering or deliberating with attention and caution.

Analytical

Pertaining to the systematic examination or analysis of data or information.

Imagination-Based

A characteristic of ideas or innovations that originate from creative thinking and visualization.

Problem

A situation, question, or matter that needs to be solved or addressed.