ZuoTi.Pro
Question

Which of the following methods does NOT use the concept of 'the time value of money'?...

Which of the following methods does NOT use the concept of 'the time value of money'?

net present value (NPV)

compound interest

internal rate of return (IRR)

accounting rate of return (ARR)

math   Statistics-And-Probability   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The answer is:

ARR is a financial ratio used in capital budgeting and does not take into account the concept of the time value of money.

Let me know in the comments if anything is not clear. I will reply ASAP! Please do upvote if satisfied!

0 0
Add a comment
Know the answer?
Add Answer to:
Which of the following methods does NOT use the concept of 'the time value of money'?...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Which capital budgeting metric does not account for time value of money? Group of answer choices...

    Which capital budgeting metric does not account for time value of money? Group of answer choices Internal rate of return (IRR). Net present value (NPV). Profitability Index. Payback period. All of these incorporate time value of money in their calculation. PreviousNext

  • Time Value of Money What is the time value of money and why is it important?...

    Time Value of Money What is the time value of money and why is it important? Describe the net present value (NPV) and internal rate of return (IRR) methodologies and their use in capital budgeting decisions. What is NPV when the discount rate (hurdle rate) equals IRR? Project Management

  • Which one of the following methods of analysis ignores the time value of money? Net present...

    Which one of the following methods of analysis ignores the time value of money? Net present value Internal rate of return Discounted cash flow analysis Payback Profitability index

  • Which of the following ways to evaluate profitability deal with discounted cash flow techniques? Internal Rate...

    Which of the following ways to evaluate profitability deal with discounted cash flow techniques? Internal Rate of Return (IRR) Net Present Value (NPV) Accounting Rate of Return (ARR) a and b All of the above

  • 1. If a manager were concerned with the time value of money, from which two capital...

    1. If a manager were concerned with the time value of money, from which two capital budgeting methods should the manager choose? Multiple Choice IRR or Payback. BET or IRR. BET or Payback. NPV or ARR. NPV or Payback. 2. Restating future cash flows in terms of present values and then determing the payback period using these present values is known as: Multiple Choice Break-even time (BET) Internal rate of return method. Accounting rate of return method. Net present value...

  • A) Explain the concept of time value of money B) Martin Co. is considering a project...

    A) Explain the concept of time value of money B) Martin Co. is considering a project requiring Investment of $ 110,000 in equipment with a life of five years and a residual value of $ 15,000. Annual net cash flows will be $ 25,000, $ 37,000, $ 25,000, $ 21,000 and $ 10,000 for the five years respectively. According to the company policy, a project with a payback period of 2.5 years or less is acceptable. The company has a...

  • 1. Which of the following capital investment evaluation methods use present values? A. Net present value...

    1. Which of the following capital investment evaluation methods use present values? A. Net present value method B.Average rate of return method C. Both "Net present value method" and "Average rate of return method" D. Neither "Net present value method" nor "Average rate of return method" 2. A common characteristic found in capital investment evaluation methods that use present values is ________. no interest rate an interest rate their ease of use None of these choices are correct. 3.  Assume that...

  • Which of the following statements is correct? The internal rate of return (IRR) does not allow...

    Which of the following statements is correct? The internal rate of return (IRR) does not allow you to determine whether mutually exclusive projects are acceptable. The net present value (NPV) is the only capital budgeting technique that allows you to determine which independent projects are acceptable. The net present value (NPV) technique provides an indication of the dollar benefit (on a present value basis) to the firm's shareholders of purchasing a capital budgeting project. A project's internal rate of return...

  • Mastery Problem: Net Present Value and Internal Rate of Return Part One Companies use capital investment...

    Mastery Problem: Net Present Value and Internal Rate of Return Part One Companies use capital investment analysis to evaluate long-term investments. Capital investment evaluation methods that use present values are (1) Net present value method (NPV) and (2) Internal rate of return (IRR) method. Methods That Use Present Values Of the two capital investment evaluation methods, a defining characteristic NPV and IRR is that they consider  the time value of money. This means that money tomorrow is worth less than  money today....

  • The principal of the time value of money is probably the single most important concept in...

    The principal of the time value of money is probably the single most important concept in financial management. One of the most frequenty encountered applications involves the calculation of a future value. The process for converting present values into future values is called knowledge of the values of three of fourtime-value-of-money variables. which of the following is not one of these This process requires ariables? O The interest rate (1) that could be eamed by deposited funds O The duration...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT