Which capital budgeting method considers time value of money

Which capital budgeting method considers time value of money

Which capital budgeting method considers time value of money?

A. Payback period

B. Discounted cash flow NPV

C. Accounting rate of return(ARR)

D. Simple ROI without discount

Answer: B

Rationale: NPV discounts future cash flow by WACC to present value, incorporates TVM concept.