The Two Methods That Consider the Time Value of Money

question 83

Multiple Choice

The two methods that consider the time value of money concept to analyze capital investment proposals are:

• A) the net present value method and the internal rate of return method.
• B) the net present value method and the average rate of return method.
• C) the internal rate of return method and the average rate of return method.
• D) the cash payback method and the net present value method.

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Definitions:

Coercive Acts

Laws or measures taken to force someone to comply with certain rules or regulations, often seen in historical contexts like the British legislation before the American Revolution.

Involuntarily Accepted

Accepted or agreed upon without the recipient's willingness or consent.

Scienter Requirement

A legal term referring to the knowledge on the part of a person that an act is wrong or that a material fact has been concealed.

Reckless Indifference

A disregard for the safety or welfare of others, often seen as a form of negligence in legal contexts.