Which of the Following Evaluation Methods Ignores the Time Value

question 91

Multiple Choice

Which of the following evaluation methods ignores the time value of money?

• A)The accounting rate-of-return and discounted cash flow methods
• B)The net present value and discounted cash flow methods
• C)The payback period and net present value methods
• D)The accounting rate-of-return and payback period methods

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Definitions:

Manufacturing Equipment

Tools, machinery, and other durable assets used in the process of producing goods in a manufacturing setting.

Cost of Goods Manufactured

The total cost incurred to manufacture products within a specific period, including materials, labor, and overhead, ready for sale.

Work in Process

Partially finished goods or goods in the process of being produced in a manufacturing setting.

Manufacturing Costs

The total expense involved in the process of producing goods, including raw materials, labor, and overhead costs.