Which of the following four options is true?

Choices	Capital Budgeting Method	Does Consider the Time Value of Money	Does Consider Cash Flows
Option 1	Payback method	Yes	No
Option 2	Net present value method	Yes	Yes
Option 3	Internal rate of return method	No	Yes
Option 4	Simple rate of return	Yes	No

Multiple Choice

• Option 2

• Option 3

• Option 4

• Option 1