Which Methods of Evaluating a Capital Investment Project Ignore the Time

question 161

Multiple Choice

Which methods of evaluating a capital investment project ignore the time value of money?

• A)Net present value and accounting rate of return.
• B)Accounting rate of return and internal rate of return.
• C)Internal rate of return and payback period.
• D)Payback period and accounting rate of return.
• E)Net present value and payback period.

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Definitions:

Bystander Effect

The finding that people are less likely to offer help when they are in a group than when they are alone.

Pluralistic Ignorance

A psychological state where individuals mistakenly believe their thoughts, feelings, or behaviors are different from those of the group, often due to a lack of open communication.

Bystander Effect

A social psychological theory that suggests that individuals are less likely to offer help to a victim when other people are present, often due to a diffusion of responsibility.

Diffusion of Responsibility

The phenomenon where individuals in a group are less likely to take action or feel accountable, assuming that others will do so.