Which capital budgeting method uses accrual accounting,rather than net cash inflows,as a basis for calculations?

Name: Which capital budgeting method uses accrual accounting,rather than net cash inflows,as a basis for calculations?
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Question

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The accounting rate of return uses accrual accounting to calculate average annual profits as a percentage of the initial investment. It does not consider cash inflows and outflows, making it different from the other capital budgeting methods listed.

Which Capital Budgeting Method Uses Accrual Accounting,rather Than Net Cash