Question
Consider the following four methods of evaluating capital investment projects: Net present value (NPV), internal rate of return (IRR), payback period (PBP), discounted payback period
Consider the following four methods of evaluating capital investment projects: Net present value (NPV), internal rate of return (IRR), payback period (PBP), discounted payback period (DPBP). Which of these methods incorporates the time value of money concept?
a)PBP, DPBP, and NPV only
b)NPV, DPBP, and IRR only
c)NPV and IRR only
d)All incorporate the time value of money concept
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Financial Management Theory & Practice
Authors: Eugene BrighamMichael Ehrhardt
12th Edition
0324652178, 9780324652178
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