Asked by quddusbasit The time value of money is explicitly considered in which one of the following capital budgeting method(s)? Multiple Choice Answer & Explanation  Rated Helpful Answered by VanessaBadaoui1 dictum vitae odio. Donec alique ce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectu Unlock full access to Course Hero Explore over 16 million step-by-step answers from our library Subscribe to view answer Student reviews 100% (4 ratings) Asked by ConstableScience8612 on coursehero.com Image transcription text Which of the following capital budgeting methods considers cash flows, but not the time value of money? Multiple Choice 0 The net present value method The simple rate of return method The internal rate of return method . The payback method ... Image transcription text Which of the following statements is true regarding the payback period? Multiple Choice O It measures the length of time that it takes for a project to recover its initial cost from the discounted net cash inflows that it generates. It measures the length of time that it takes for a project to recover its initial cost from the net cash inflows that it generates. O It measures the length of time that it takes for a project to recover its initial cost from the incremental net operating income that it generates. O It measures the length of time that it takes for a project to recover its initial cost from the discounted incremental net operating income that it generates.... Image transcription text A company's cost of capital is usually regarded as: Multiple Choice O a reliable estimate of its simple rate of return. the hurdle rate it uses to compute capital investment payback periods. its minimum required rate of return, 0 the ameunt by which its current assets exceed its current liabilities, ... Image transcription text Which of the following equations is used to calculate the simple rate of return? Multiple Choice 0 Initial investment + Annual incremental net operating income Annual incremental net operating income % Initial investment Initial investment + Annual incremental cash flows 0 Annual incremental cash flows + Initial investment ... Answered by AdmiralDangerPartridge24 on coursehero.com um dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, cons Unlock access to this and
over Have an account? Log In Step-by-step explanationum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laore Which of the following capital budgeting method does not consider the time value of money?Determine the payback period for an investment. The payback method focuses on the payback period, which is the length of time that it takes for a project to recoup its initial cost out of the cash receipts (inflows) that it generates. does not consider the time value of money.
Which of the following is a capital budgeting method?The process involves analyzing a project's cash inflows and outflows to determine whether the expected return meets a set benchmark. The major methods of capital budgeting include discounted cash flow, payback, and throughput analyses.
Why time value of money is important in capital budgeting?The time value of money (TVM) is an important concept to investors because a dollar on hand today is worth more than a dollar promised in the future. The dollar on hand today can be used to invest and earn interest or capital gains.
In which method time value of money is not considered?Answer: the payback method is one of the techniques used in capital budgeting that does not consider the time value of money. the payback method simply computes the number of years it will take for an investment to return cash equal to the amount invested.
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The time value of money is considered in the following capital budgeting methods
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