Which Method of Analysis Does Not Consider the Time Value

question 23

Multiple Choice

Which method of analysis does not consider the time value of money?

• A) net present value (NPV)
• B) internal rate of return (IRR)
• C) payback
• D) future value of an investment (FVI)

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Definitions:

Budgeted Accounts Receivable

The projected amounts to be received by a company for goods or services offered on credit, as estimated during the budgeting process.

Budgeted Sales

The projected amount of sales, in units or dollars, expected for a specific period.

Ending Inventory

The total value of all unsold goods remaining at the end of an accounting period.

Finished Goods Inventory

The stock of completed products ready for sale but not yet sold, held by a manufacturing company.