Question

Which of the following method is not based on concept of time value of money?
A. Discounted payback period
B. Accounting rate of return
C. Profitability index
D. Modified internal rate of return​

Answer 1

Answer:

Modified internal rate of return

Step-by-step explanation:

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Answer 2

Answer:

Answer

Average Rate of Return is considered simplified method because it does not use time value of money in evaluating capital investments.

Average Rate of Return is considered simplified method because it does not use time value of money in evaluating capital investments.The accounting (average) rate of return (ARR) method calculates the return generated from the average net income expected for each of the years the proposed capital investment is expected to be used in operations