Final answer:
The payback period is the cash flow analysis method that does not consider the time value of money, only the time to recover the original investment. Present discounted value is important in both business and government decisions to compare immediate costs with future benefits.
Step-by-step explanation:
The method used to analyze cash flows associated with a project that does not consider the time value of money is the payback period method. Unlike the net present value (NPV), internal rate of return (IRR), and profitability index (PI), which all take into account the present discounted value of future cash flows, the payback period method solely focuses on the length of time it takes for a project to recover its initial investment, without discounting future cash flows to their present values.
Present discounted value is crucial in areas beyond finance. Businesses and governments often use it to weigh the present costs against the future benefits of investments, such as capital investments in business or policies in government initiatives. This analytical tool helps in making informed decisions about investments that impact both present and future conditions.