Fill in each statement with the appropriate capital budgeting method: payback period, ARR, NPV$,$ or IRR.

a$.$ ignores salvage value after the payback period.

b$.$ uses discounted cash flows to determine the asset's unique rate of return.

c$.$ highlights risky investments.

d$.$ In capital rationing decisions, the profitability index must be computed to compare investments requiring different initial investments when the

e$.$ and $$ incorporate the time value of money.

f$.$ focuses on time, not profitability.

g$.$ uses accrual accounting income.

h$.$ measures profitability but ignores the time value of money.

i$.$ finds the discount rate that brings the investment's NPV to zero.

$(1)$ Payback period ARR $q,$ IRR

NPV

$(5)$ Payback perlod

$(6)$

$(2)$ Payback period

$(3)$ Payback period

$(4)$

ARR

ARR

ARR

IRR

NPV

IRR

$$ NPV

$$ Payback period

$(7)$ Payback period

$(8)$

NPV

ARR

IRR

NPV

NPV

ARR

IRR

$$ NPV

$(9)$ Payback period

$(10)$ Payback period

ARR

IRR $$

ARR

NPV

NPV