The Method of Project Selection That Brings the Time Value

question 59

Multiple Choice

The method of project selection that brings the time value of money into capital investment analysis is the

• A) rate of return on initial investment.
• B) net present value method.
• C) payback method.
• D) accounting rate-of-return method.

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Definitions:

Closed-ended Research

A research method that uses structured questions or surveys, where respondents choose from predetermined answers.

Interpretivism

A research paradigm that emphasizes the understanding of social phenomena through the meanings that people assign to them.

Rationalism

The view that knowledge is best acquired by reason and factual analysis rather than faith or emotion.

Positivism

The idea that phenomena are governed by, and can be explained by, rules based on objective observation and generalizations from those observations.