Which Two Capital Budgeting Techniques Take the Time Value of Money

question 47

Multiple Choice

Which two capital budgeting techniques take the time value of money into consideration?

• A) Net present value method and unadjusted rate of return method
• B) Payback method and internal rate of return method
• C) Net present value method and internal rate of return method
• D) Unadjusted rate of return method and payback method

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Definitions:

Net Income

The end profit of a company once every expense, tax, and cost has been taken out of its total income.

Business Entity Assumption

A fundamental accounting principle that treats the transactions of a business separately from those of its owners or other businesses.

Accounting Information

Data generated from the accounting processes of a company, including financial statements and records that inform stakeholders about its financial performance.

Business Entities

Legal structures that are allowed to engage in business, such as corporations, partnerships, and sole proprietorships.