The method of project selection that brings the time value of money into capital investment analysis is the

A) accounting rate-of-return method.

B) payback method.

C) rate of return on initial investment.

D) net present value method.



. With regard to the time value of money,

A) the present value and the future value have to be equal.

B) the future value amount is always higher than the present value amount.

C) amounts are adjusted for inflation over the period of the investment.

D) the amount of the present value is always higher than the future value.