Which statement about payback method and the accounting rate of return method are correct? $\begin{array}{lll}
&\text { Profitability }&\text { Time Value of Money }\
i&\text { Ignored by both methods }&\text { Ignored by both methods }\
ii&\text { Ignored by both methods }&\text { Used in accounting rate of return; ignored } \&& \text { by payback method }\iii&\text { Considered by accounting method, not by }&\text { Ignored by both methods }\&\text { payback }\
iv&\text { Considered by accounting method, not by }&\text { Considered by both methods }\&\text { payback }\

\end{array}$

Question

Which statement about payback method and the accounting rate of return method are correct? $\begin{array}{lll}
&\text { Profitability }&\text { Time Value of Money }\
i&\text { Ignored by both methods }&\text { Ignored by both methods }\
ii&\text { Ignored by both methods }&\text { Used in accounting rate of return; ignored } \&& \text { by payback method }\iii&\text { Considered by accounting method, not by }&\text { Ignored by both methods }\&\text { payback }\
iv&\text { Considered by accounting method, not by }&\text { Considered by both methods }\&\text { payback }\

\end{array}$

Quizplus · Accepted Answer

The accounting rate of return method considers profitability but does not take the time value of money into account, while the payback method ignores profitability and also does not consider the time value of money.

Which Statement About Payback Method and the Accounting Rate of Return