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:

Weak Economy

A state of an economy where there is slow economic growth, high unemployment rates, and generally poor economic performance.

Product Development

The creation and design of new products or improvements to existing products, from idea conceptualization to market launch.

Market Penetration

An indicator of how much a product or service has been sold or used, in relation to the overall potential market for it.

Positioning

The process of establishing a brand or product in the mind of consumers by differentiating it from competitors through marketing strategies.