Which of the Following Capital Budgeting Methods Ignores the Time

question 98

Multiple Choice

Which of the following capital budgeting methods ignores the time value of money?

• A) Internal rate of return method
• B) Net present value method
• C) Payback method
• D) All of these consider the time value of money

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Definitions:

Closed System

A physical system that does not exchange matter with its surroundings, though it may exchange energy.

Penetrating Radiation

Radiation that can penetrate through substances and materials, potentially causing ionization of atoms.

Gamma

A type of high-energy electromagnetic radiation, often associated with nuclear reactions and certain types of radioactive decay.

Ionizing Particles

Subatomic particles that carry enough energy to detach electrons from atoms or molecules, thereby ionizing them.