Which One of the Following Methods of Analysis Ignores the Time

question 65

Multiple Choice

Which one of the following methods of analysis ignores the time value of money?

• A)Net present value
• B)Internal rate of return
• C)Discounted cash flow analysis
• D)Payback
• E)Profitability index

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Definitions:

Raw Materials

Basic materials that are used in the production process to manufacture goods.

Finished Unit

A product that has completed all stages of production and is ready for sale to consumers.

Cash Disbursements

Payments made in cash by a business during a period of time.

Raw Materials Purchases

The total cost of raw materials bought by a company for production purposes during a specific time frame.