The Time Value of Money Is Ignored by Which Method

question 92

Multiple Choice

The time value of money is ignored by which method?

• A) The internal rate of return method.
• B) The simple rate of return method.
• C) The net present value method.
• D) Both the internal rate and simple rate of return methods.

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Definitions:

Modified Rebuy

A purchasing scenario in which a buyer is willing to reconsider and potentially modify the specifications, suppliers, or price of items previously bought.

Product Specifications

Detailed descriptions of the technical and operational requirements of a product, including its design, features, and performance criteria.

Buy Classes

Categories of purchasing decisions characterized by the level of complexity and involvement required, differing between new buys, modified rebuys, and straight rebuys.