Final answer:
Accounting profit calculates total revenue minus explicit costs without considering the time value of money, whereas the present value break-even includes the time value by discounting future cash flows. They both compare revenues and costs but use different methods.
Step-by-step explanation:
In comparing accounting profit and present value break-even point, the correct statement is that accounting profit does not consider the time value of money. Accounting profit is the total revenue minus explicit costs, which means the difference between dollars brought in and dollars paid out. In contrast, a present value break-even point analysis discounts future cash flows to their present value, taking into consideration the time value of money, and determines the point at which the present value of these cash flows equals the initial investment. This analysis does not ignore cash flows; rather, it is heavily dependent on them.
Therefore, the correct statement from the options provided is 'c) Accounting profit and present value break-even point are conceptually similar', as both concepts involve a comparison of revenues and costs to determine profitability, but they use different inputs and considerations. Accounting profit is a simpler calculation that does not account for the time value of money, while the present value break-even point incorporates this concept by considering the discounted cash flows.