Which one of the following methods of analysis ignores cash flows?
A)Profitability index
B)Payback
C)Average accounting return
D)Modified internal rate of return
E)Internal rate of return

Question

Quizplus · Accepted Answer

The average accounting return (AAR) method focuses on accounting profits rather than cash flows, making it different from other methods that consider cash flows.

Which One of the Following Methods of Analysis Ignores Cash