Which of the following techniques of project appraisal does not consider the time value of money?

Which of the following techniques of project appraisal does not consider the time value of money? Correct Answer Accounting Rate of Return

Accounting Rate of Return techniques of project appraisal does not consider the time value of money. Under this method, the asset's expected accounting rate of return (ARR) is computed by dividing the expected incremental net operating income by the initial investment and then compared to the management's desired rate of return to accept or reject a proposal.

Related Questions

Answer the question on the basis of the given information. Businesses are suffering because of lack of money available for development loans.To help businesses,the government plans to modify the income- tax structure in order to induce individual tax payers to put a larger portion of their incomes into retirement savings accounts, because as more money is deposited in such accounts, more money becomes available to borrowers. Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to increase the amount of money available for development loans for businesses?