Which Capital Budgeting Technique Recognizes the Time Value of Money

question 28

Multiple Choice

Which capital budgeting technique recognizes the time value of money?

• A) Payback period
• B) Internal rate of return
• C) Book rate of return
• D) Return on investment

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Definitions:

Rent

A periodic payment made by a tenant to a landlord in exchange for the use of land, a building, or another property.

Landlords

Individuals or entities that own real estate properties and rent them out to tenants, earning rental income in return.

Pierre-Joseph Proudhon

A French philosopher and politician, known for declaring "Property is theft!" and for his contributions to anarchist theory.

Koran

The holy book of Islam, considered by Muslims to be the word of God as revealed to the Prophet Muhammad.