Capital budgeting techniques such as payback method and net present value are based upon Generally Accepted Accounting Principles (GAAP)and accrual accounting.

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Capital budgeting techniques like payback method and net present value are not based on GAAP or accrual accounting; they are financial management tools used to evaluate investment projects, focusing on cash flows rather than accounting profits.

Capital Budgeting Techniques Such as Payback Method and Net Present