Capital Budgeting Methods Which Do NOT Incorporate Time Value of Money

question 38

True/False

Capital budgeting methods which do NOT incorporate time value of money are generally used for the initial stage of screening investment alternatives.

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Definitions:

Favorable Way

A manner or approach that is advantageous, beneficial, or creates positive outcomes.

Maslow Hierarchy

A theory in psychology proposed by Abraham Maslow that categorizes human needs into a five-tier model, ranging from basic (physiological) needs to higher-level (self-actualization) needs.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury; it is crucial in environments ranging from workplaces to public spaces to consumer products.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone, and the highest level of Maslow's hierarchy of needs.