Answer (D) is correct . The capital budgeting methods that are generally considered the best for long-range decision making are the internal rate of return and net present value methods. These are both discounted cash flow methods.
Answer (A) is incorrect because The payback method gives no consideration to the time value of money or to returns after the payback period.
Answer (B) is incorrect because The accounting rate of return does not consider the time value of money.
Answer (C) is incorrect because The unadjusted rate of return does not consider the time value of money.
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