Fill in each statement with the appropriate capital investment analysis method: Payback, ARR, NPV, or IRR. Some statements may have more than one answer.
a. ______ is ( are) more appropriate for long- term investments.
b. ______ highlights risky investments.
c. ______ shows the effect of the investment on the company’s accrual- based income.
d. ______ is the interest rate that makes the NPV of an investment equal to zero.
e. ______ requires management to identify the discount rate when used.
f. ______ provides management with information on how fast the cash invested will be recouped.
g. ______ is the rate of return, using discounted cash flows, a company can expect to earn by investing in the asset.
h. ______ does not consider the asset’s profitability.
i. ______ uses accrual accounting rather than net cash inflows in its computation.