The Capital Budgeting Method That Recognises the Time Value of Money

Multiple Choice

The capital budgeting method that recognises the time value of money by discounting cash flows over the life of the project, using the company's required rate of return as the discount rate is called the

A) simple rate of return method.
B) the net present value method.
C) the internal rate of return method.
D) the payback methoD.