The net present value method uses cash flows in its analysis and is therefore a useful method for investment analysis.
The payback method uses cash flows in its analysis and is therefore a useful method for investment analysis.
The internal rate of return method uses cash flows in its analysis and is therefore a useful method for investment analysis.
Accounting rate of return uses accounting profit in its analysis instead of cash flows. This makes this the least useful of the methods listed for investment analysis.
| 
