The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as:
(1) average rate of return
(2) cash payback methods.

Question

The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as: 
(1) average rate of return 
(2) cash payback methods.

Quizplus · Accepted Answer

The two general categories for evaluating capital investment proposals are typically referred to as non-discounted cash flow methods (like payback period) and discounted cash flow methods (like net present value and internal rate of return). Average rate of return is a specific method, not a category.

The Methods of Evaluating Capital Investment Proposals Can Be Grouped