Which of the following are two methods of analyzing capital

Which of the following are two methods of analyzing capital investment proposals that both ignore present value? Oa. net present value and average rate of return b. internal rate of return and net present value xOc. internal rate of return and average rate of return average rate of return and cash payback method

Solution

Answer is d. Average rate of return and cash payback period method.

Explanation: Average rate of return takes in to consideration average annual income and average investment.

And Payback period method considers the time taken by annual cash inflows to cover the initial investment made.

Hence, both these does not take in to consideration Present value of cash flows.