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While evaluating capital investment proposals, the time value of money is considered in case of _______. 

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While evaluating capital investment proposals, the time value of money is considered in case of _______. 

A. Payback period Method 

B. Discounted Cash Flow Method 

C. Internal Rate of Return Method 

D. Accounting Rate of Return Method

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2 Answers

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B. Discounted Cash Flow Method 

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The correct option is B. Discounted Cash Flow Method.

The time value of money is primarily considered in the Discounted Cash Flow (DCF) Method. This method discounts future cash flows to their present value using a discount rate, which accounts for the time value of money.

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