Question:
Which of the following capital budgeting techniques ignores the time value of money?
A) Payback
B) Net present value
C) Internal rate of return
D) Two of the above.
Capital Budgeting Techniques:
The capital budgeting process is the process of allocating funds to available investment alternatives so that the overall profitability is maximized. Examples of these techniques are the net present value method, internal rate of return method, profitability index method, and payback period method.
Answer and Explanation:1
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The correct answer is option A) Payback.
Capital budgeting techniques such as the net present value method and internal rate of return take into...
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