What flaw is shared by the traditional payback method and the accounting rate of return method?

Question

Quizplus · Accepted Answer

Both the traditional payback method and the accounting rate of return method do not take into account the time value of money, meaning they do not consider the present value of future cash flows. This is a significant limitation as it ignores the principle that money available now is worth more than the same amount in the future due to its potential earning capacity.

What Flaw Is Shared by the Traditional Payback Method and the Accounting