Final answer:
The calculation that takes into account the time value of money among Payback, Average accounting return, and Profitability index is the Profitability index, which is option C) III only.
Step-by-step explanation:
The calculation that takes the time value of money into account between Payback, Average accounting return, and Profitability index is the Profitability index. The Payback calculation does not take the time value of money into account, as it simply calculates the period it will take for an investment's returns to cover its cost. The Average accounting return also does not take the time value of money into account, instead, it uses average profits over a certain period. On the contrary, the Profitability index is a calculation that does consider the time value of money by discounting future cash flows to present value and comparing them to the initial investment. Therefore, the correct answer is C) III only.