Which Statement About Payback Method and the Accounting Rate of Return

Which statement about payback method and the accounting rate of return method are correct? $\begin{array}{lll}&\text { Profitability }&\text { Time Value of Money }\\i&\text { Ignored by both methods }&\text { Ignored by both methods }\\ii&\text { Ignored by both methods }&\text { Used in accounting rate of return; ignored } \\&& \text { by payback method }\\iii&\text { Considered by accounting method, not by }&\text { Ignored by both methods }\\&\text { payback }\\iv&\text { Considered by accounting method, not by }&\text { Considered by both methods }\\&\text { payback }\\\end{array}$

A) i
B) ii
C) iii
D) iv

Correct Answer:

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