Which Statement About Payback Method and the Accounting Rate of Return

question 12

Multiple Choice

Which statement about payback method and the accounting rate of return method are correct? $\begin{array}{lll}&\text { Profitability } & \text { Time Value of Money } \\i&\text { Ignored by both methods } & \text { Ignored by both methods }\\ii&\text { Ignored by both methods }&\text { Used in accounting rate of return; ignored }\\&&\text { by payback method }\\iii&\text { Considered by accounting method, not by }&\text { Ignored by both methods }\\&\text { payback }\\iv&\text { Considered by accounting method, not by }&\text { Considered by both methods }\\&\text { payback }\end{array}$

• A) i
• B) ii
• C) iii
• D) iv

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Definitions:

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The British Prime Minister from 1937 to 1940, known for his policy of appeasement towards Adolf Hitler's Germany before World War II.

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A conservative political organization in the United States during the 1930s that opposed the New Deal and advocated for free enterprise and limited government.

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