_____________ method for profitability evaluation of a project does not account for investment cost due to land ?
Correct answer: B. Pay out period
- A. Net present worth
- B. Pay out period
- C. Discounted cash flow
- D. Rate of return on investment
Explanation
The payback or payout period measures how long cumulative cash inflows take to recover the investment, and standard versions often omit land because it is recoverable rather than consumed or depreciated. Net present worth, discounted cash flow and rate-of-return methods can include land in the investment base.
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