Neither the Net Present Value nor the Internal Rate of Return

question 88

True/False

Neither the net present value nor the internal rate of return methods of evaluating investments consider the time value of money.

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Definitions:

Capital Goods

Long-lasting goods acquired by a business to produce goods or services, as opposed to being sold directly to consumers.

Productive Resources

Inputs used in the production of goods or services in order to make an economic profit. These include land, labor, capital, and entrepreneurship.

Consumer Goods

Products and services that are purchased or consumed by individuals or households for their direct satisfaction and needs.

Pollution Permits

Allowances provided by government authorities that enable the holder to emit a specific amount of pollutants into the environment.