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Unformatted text preview: and inflows. That is, it is the rate which makes the NPV ____. III. Sensitivity Analysis IV. Payback Method This method centers on a ____ of time known as the payback period, which is the length of time that it takes for an investment project to recoup its own initial cost out of the cash receipts that it generate. V. Accrual Accounting Rate of Return (ARR) Method The rate of return promised by an investment project when the time value of money is not considered; it is computed by dividing a project's annual net income by the initial or average investment required. VI. EVALUATING MANAGERS & GOAL-CONGRUANCE ISSUES...
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- Fall '09