Which of the following is NOT included in capital budget methods?

The capital budgeting process focuses on long-term investments that are expected to provide value over multiple years. This typically includes substantial physical assets or investments that contribute to the operational capabilities and growth of a business.

Land, buildings, and equipment are all integral to capital budgeting as they represent significant expenditures that form the foundation of a company's physical assets. These are long-term investments that are expected to generate returns through their use in operations, improvement of production capabilities, or enhancement of services.

Inventories, on the other hand, are classified as current assets. They are related to the day-to-day operations of the business and are typically turned over within a year. Since they are not long-term investments or part of the capital assets, they do not fall under the capital budgeting methods. The primary focus of capital budgeting is on investments that will yield benefits over an extended period, making inventories an inappropriate choice in this context.

In summary, while land, buildings, and equipment are essential components of capital budgeting due to their lasting impact on a company’s ability to generate revenue, inventories do not meet the criteria for capital assets, as they are more closely linked to short-term operational needs.