Solution: b. d. g. h. Fill in each statement with the appropriate capital budgeting method: payback period, ARR, NPV, or IRR. measures profitability, but ignores the time value of money. and incorporate the time value of money. period focuses on time, not profitability. uses accrual accounting income. finds the discount rate, which brings the investment's NPV to In capital rationing decisions, the profitability index must be computed to compare investments requiring different initial investments when the method is used. ignores salvage value. uses discounted cash flows to determine the asset's unique rate of retum. hi hli htsr investments.