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Section 9.1 The net present value rule states that you should accept a project if its net present value Positive- the net present value rule states that you will only accept the project if the net present value of the project is positive Section 9.2 A drawback of the payback method of project analysis is It does not consider time value factor-payback period does not consider the time value factor Section 9.3 The discounted payback period for a project will be the payback period for the project given a positive, nonzero discount rate. Discounted Payback period will be longer than Payback Period without discount. As it consider the effect of Time Value of money. So the cash flow will be adjusted to time value of money. Hence recovery will take more time. Section 9.4. What is an advantage of the average accounting return method of project analysis? An advantage of the average accounting return method of analysis is easy avallability of information needed for computation