contestada

Which one of the following methods considers the time value of money in evaluating alternative capital expenditures?

A. Accounting rate of return.
B. Net present value.
C. Payback period.
D. Cash flow method.
E. Return on average investment.

Respuesta :

Answer:

correct option is B. Net present value

Explanation:

solution

here time value of money in the evaluating of alternative capital expenditure is NPV ( Net present value )

and we know that NPV ( Net present value ) is calculated as the difference in between the cash inflow and the present value of the cash outflow  ............1

so we can say correction option is B. Net present value

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