General Studies · Capital Budgeting

Which of the following capital budgeting methods does NOT take into account the time value of money?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Profitability Index (PI) method
2Payback Period method✓
3Internal Rate of Return (IRR) method
4Net Present Value (NPV) method

Correct answer

Payback Period method

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Which of the following capital budgeting methods does NOT take into account the time value of money?

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Which of the following capital budgeting methods does NOT take into account the time value of money?

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