Which of the Following Investment Criteria Takes the Time Value

question 58

Multiple Choice

Which of the following investment criteria takes the time value of money into consideration?

• A)payback period only.
• B)profitability index only.
• C)internal rate of return for borrowing projects only.
• D)payback period, profitability index and IRR.

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Definitions:

False Representation

A misleading statement or action that deceives or is intended to deceive.

Material Fact

Any fact that, if known, could influence an individual's decision-making in a transaction, contract, or legal case.

Physical Duress

A situation where an individual is forced to act against their will or consent due to the threat of physical harm or actual physical force.

Improper Threats

Coercive statements or actions that are unethical, illegal, or otherwise inappropriate, especially to gain an advantage in a negotiation or transaction.