The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as
(1) average rate of return and
(2) cash payback methods.

Question

The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as 
(1) average rate of return and 
(2) cash payback methods.

Quizplus · Accepted Answer

The methods of evaluating capital investment proposals are generally grouped into two categories: (1) non-discounting methods such as the average rate of return and cash payback period, and (2) discounting methods such as the net present value (NPV) and internal rate of return (IRR).

The Methods of Evaluating Capital Investment Proposals Can Be Grouped