{"id":56450,"date":"2024-04-16T00:44:53","date_gmt":"2024-04-16T00:44:53","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=56450"},"modified":"2024-04-16T00:44:53","modified_gmt":"2024-04-16T00:44:53","slug":"which-of-the-following-techniques-of-project-appraisal-does-not-consider-the-time-value-of-money","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-techniques-of-project-appraisal-does-not-consider-the-time-value-of-money\/","title":{"rendered":"Which of the following techniques of project appraisal does not consider the time value of money?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Benefit cost ratio&#8221; option2=&#8221;Net present value&#8221; option3=&#8221;Internal rate of return&#8221; option4=&#8221;Accounting Rate of Return&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is D. Accounting Rate of Return (ARR).<\/p>\n<p>Benefit-cost ratio (BCR) is a measure of the efficiency or profitability of a project, and it is calculated by dividing the total benefits of a project by the total costs of the project.<\/p>\n<p>Net present value (NPV) is a measure of the profitability of a project, and it is calculated by taking the present value of all the future cash flows of a project and subtracting the initial investment.<\/p>\n<p>Internal rate of return (IRR) is the rate of return that makes the net present value of a project equal to zero.<\/p>\n<p>Accounting rate of return (ARR) is a measure of the profitability of a project, and it is calculated by dividing the average annual net income of a project by the initial investment.<\/p>\n<p>ARR does not consider the time value of money because it uses the average annual net income of a project, rather than the present value of all the future cash flows of a project. This means that ARR can be misleading, especially for projects with long-term cash flows.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Benefit cost ratio&#8221; option2=&#8221;Net present value&#8221; option3=&#8221;Internal rate of return&#8221; option4=&#8221;Accounting Rate of Return&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-56450","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following techniques of project appraisal does not consider the time value of money?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-techniques-of-project-appraisal-does-not-consider-the-time-value-of-money\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following techniques of project appraisal does not consider the time value of money?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Benefit cost ratio&#8221; 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