Which of the Following Capital Budgeting Techniques Ignores the Time

question 84

Multiple Choice

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

• A) payback period approach
• B) net present value
• C) internal rate of return
• D) profitability index

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Definitions:

Stereotype

A generalized (sometimes accurate but often overgeneralized) belief about a group of people.

Latin-American

Pertaining to cultures and peoples of countries in the Americas where Romance languages, primarily Spanish and Portuguese, are spoken.

Impractical

Not sensible or realistic in application; not feasible in practice.

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.