Blueprint Problem: Payback and accounting rate of return Companies use capital investment analysis to evaluate long-term investments. Capital investment evaluation methods that do not use present values are (1) Average rate of return method and (2) Cash payback method. Non-Discounting Models One type of model used to assess the viability of a potential capital investment is known as a non-discounting model. The primary difference between a discounting model and a non-discounting model is that th