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:

Vertebrates

Animals characterized by having a backbone or spinal column, including mammals, birds, reptiles, amphibians, and fish.

Chordates

A large phylum of animals that, at some stage in their development, possess a notochord, a hollow dorsal nerve cord, and pharyngeal slits, including vertebrates like fishes, amphibians, reptiles, birds, and mammals.

Amphibian Heart

A three-chambered heart found in amphibians that consists of two atria and one ventricle, partially separating oxygenated and deoxygenated blood.