GATE 2026 Chemical Engineering, Q29 · Plant Economics
The correct answers are A. rate of return on investment; C. payback period.
Question
Which of the following methods for calculating profitability does/do NOT consider the time value of money?
Official answer: A. rate of return on investment; C. payback period
Why
GATE 2026 official key: (A, C). Simple rate of return on investment and (simple) payback period ignore the timing of cash flows; discounted cash flow rate of return and net present worth explicitly discount cash flows.
Explanation cross-checked for consistency. Final answer matches the official IIT answer key.