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For Each of the Capital Budgeting Methods Listed Below, Place

Question 110

Essay

For each of the capital budgeting methods listed below, place an X in the correct column, indicating the measurement basis of each, the ability to make comparison among projects, and whether each method reflects or ignores the time value of money.
 Comparison among  Measurement Basis  projects  Time value of money  Cash  flows  Accrual  income  Allows  comparison  Difficult  to  compare  Reflects  time value  of money  Ignores  time value  of money  Payback period  Accounting rate of  return  Net present value  Internal rate of  return \begin{array}{|l|c|c|c|c|c|c|}\hline&&&\text { Comparison among }\\&\text { Measurement Basis }&&\text { projects }&&\text { Time value of money }\\\hline & \begin{array}{c}\text { Cash } \\\text { flows }\end{array} & \begin{array}{c}\text { Accrual } \\\text { income }\end{array} & \begin{array}{c}\text { Allows } \\\text { comparison }\end{array} & \begin{array}{c}\text { Difficult } \\\text { to } \\\text { compare }\end{array} & \begin{array}{c}\text { Reflects } \\\text { time value } \\\text { of money }\end{array} & \begin{array}{c}\text { Ignores } \\\text { time value } \\\text { of money }\end{array} \\\hline \text { Payback period } & \\\hline \begin{array}{l}\text { Accounting rate of } \\\text { return }\end{array} & \\\hline \text { Net present value } & \\\hline \begin{array}{l}\text { Internal rate of } \\\text { return }\end{array} & \\\hline\end{array}

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