question content areamethods that ignore present value in capital investment analysis include the internal rate of return method. true false

Respuesta :

The statement that methods that ignore present value in capital investment analysis include the internal rate of return method is false.

What is capital investment?

A company makes a capital investment when it buys tangible assets to utilise in achieving its long-term goals and objectives. Among the things that are bought as capital investments are factories, real estate, and equipment.

The project may be funded by a number of sources, including venture capital agreements and conventional bank loans.

The broad phrase "capital investment" has two distinct definitions:

A company may receive funding from a person, a venture capitalist group, or a financial institution. The project could be funded by a loan or a prospective future profit-sharing payment. In this context, money is referred to as capital.

A corporation's management is permitted to invest capital in the company. For instance, they make long-term investments in equipment that will enable the business to operate more effectively or expand more quickly. Capital in this context refers to material possessions.

It is incorrect that capital investment analysis methods that disregard current value include internal rate of return strategies.

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