Both the payback and the accounting rate of return methods focus on cash flows that an asset generates.

Name: Both the payback and the accounting rate of return methods focus on cash flows that an asset generates.
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The payback method focuses on the time it takes to recover the initial investment from the cash flows an asset generates, while the accounting rate of return method focuses on the accounting profit generated by the asset, not directly on cash flows.

Both the Payback and the Accounting Rate of Return Methods