A. The profitability index is a benefit-cost ratio. It is the ratio of the present value of net future expected cash flows, discounted at the required rate of return, to the amount of the initial investment. It is not an interest rate.

B. The internal rate of return is the discount rate at which the net present value of a project is zero. Therefore, it is also the discount rate at which the present value of the after-tax cash inflows over the life of the investment equal the initial investment, assuming that the future expected cash flows are all positive.

C. The capital asset pricing model may be used to calculate a company's cost of capital. It is not a technique that incorporates the time value of money by determining the compound interest rate of an investment such that the present value of the after-tax cash inflows over the life of the investment is equal to the initial investment.

D. The accounting rate of return is the ratio of the amount of increased book income to the required investment. It does not incorporate the time value of money.