Which of the Following Methods Does Not Consider the Time

question 83

Multiple Choice

Which of the following methods does not consider the time value of the money?

• A)Net present value
• B)Payback period
• C)Internal rate of return
• D)All of the above

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Definitions:

Profit

The financial gain achieved when the amount earned from goods or services exceeds the amount spent on their production or provision.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in financial analysis to assess investment opportunities.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Capacity Alternatives

Different strategies or options available to an organization to adjust or increase its production or service capacity to meet variations in demand.