The accrual accounting rate-of-return method is a discounted cash flow approach to analyzing possible capital budget expenditures.

Name: The accrual accounting rate-of-return method is a discounted cash flow approach to analyzing possible capital budget expenditures.
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The IRR and the NPV are the two discounted cash flow methods while the accrual accounting rate-of-return and the payback period approaches do not take into account the time value of money.

The Accrual Accounting Rate-Of-Return Method Is a Discounted Cash Flow