Which of the following capital budgeting methods uses accrual accounting income?

Name: Which of the following capital budgeting methods uses accrual accounting income?
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Question

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The accounting rate of return method uses accrual accounting income, which takes into account non-cash items such as depreciation and amortization. The payback method looks at the time it takes to recoup the initial investment, while the net present value and internal rate of return methods use discounted cash flow analysis.

Which of the Following Capital Budgeting Methods Uses Accrual Accounting