Pull the rope to the right method family

Exercise and reference answers

Categories

1. Uses time value
2. Ignores time value

Questions

1. Answer

   Ignores time value

   Question

   The payback method.

2. Answer

   Uses time value

   Question

   Net present value.

3. Answer

   Ignores time value

   Question

   Accounting rate of return.

4. Answer

   Uses time value

   Question

   Internal rate of return.

5. Answer

   Uses time value

   Question

   Discounts future cash flows.

6. Answer

   Ignores time value

   Question

   Counts a distant dollar as a dollar.

Instructions

Tap the side of the rope that each method belongs to.

Explanation