Which One of the Following Methods Considers the Time Value

question 153

Multiple Choice

Which one of the following methods considers the time value of money in evaluating alternative capital expenditures?

• A) Accounting rate of return.
• B) Net present value.
• C) Payback period.
• D) Cash flow method.
• E) Return on average investment.

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Definitions:

Elaboration

The formation of a number of different connections around a stimulus at a given level of memory encoding.

Self-reference

Self-reference pertains to the inclusion or consideration of oneself in understanding and relating to concepts or events.

Chunking

A method of organizing or grouping pieces of information together to improve the efficiency of memory recall.

Forgetting

The loss or change of memory over time, which can involve the inability to recall information, experiences, or skills.