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Which method of project selection gives consideration to the time value of money in a capital budgeting decision?
A. Payback method.
B. Average rate of return.
C. Accounting rate of return.
D. Discounted cash flows method.

Respuesta :

Answer:

D. Discounted cash flows method.

Explanation:

The discounted cash flow method is the method in which it discounted all the cash flows to their their present value

Also it provides the consideration with respect to the times value of money while taking decision related to capital budgeting

hence, the correct option is D

And all the other options are incorrect

A capital budgeting decision is a financial commitment and an investment, As by asking a project the business is taking commitments.  

  • TMV in capital budgeting is a decision through the discounting cash flow. The DFC is a method of valuing the social projects of the company along with the assets.
  • They are estimated and discounted using the cost of capital.

Hence the option D is correct.

Learn more about the project selection gives consideration to the time value.

brainly.com/question/20347481.

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