Which of the following project evaluation methods focuses on accounting income rather than cash flows?

Question

Quizplus · Accepted Answer

The accounting rate of return method focuses on accounting income, which is the net income after taxes divided by the investment. It does not consider the time value of money or cash flows. The other methods listed (net present value, internal rate of return, payback period) all focus on cash flows and the time value of money.

Which of the Following Project Evaluation Methods Focuses on Accounting