Proposal A Proposal B Proposal C Best proposal Payback period (years) Round answers 2 decimal places. Accounting rate of return; Round answers to 4 decimal places. Net present value; Round answers to nearest whole number. X S x(6,428) A (b) Factors explaining the differences in rankings include all of the following except: OThe accounting rate of return considers profitability while payback only considers the time required to recover the investment. While the accounting rate of return explicitly considers the cost of the asset as part of annual depreciation the net present value method considers the cost of the asset as part of the initial investment. ONet present value considers the timing of cash flows while payback considers only total cash flows. OThe net present value method considers the cost of capital while the payback method does not discount future cash flows.x