Which of the Following Methods Consider the Time Value of Money

question 44

Multiple Choice

Which of the following methods consider the time value of money?

• A)payback and accounting rate of return
• B)payback and internal rate of return
• C)internal rate of return and accounting rate of return
• D)internal rate of return and net present value

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Definitions:

IRS Method

A term not specifically defined but often refers to the procedures, formulas, or rules established by the IRS for calculating taxes, deductions, and credits.

Royalty Income

Income derived from the use of an individual's property, such as patents, copyrights, music, or books, typically based on a percentage of revenues.

Schedule E

A form used by the IRS for taxpayers to report income and expenses from rental real estate, royalties, partnerships, S corporations, trusts, and residual interests in REMICs.

Royalty Income

Income earned from the right to use intellectual property or natural resources.