Choice 'd' is correct. The accounting rate of return does not use cash flows as the primary basis for the calculation. It measures the accrual accounting return instead of cash flows:

Choice 'a' is incorrect. Net present value method discounts cash flows for an investment over its life to time period zero using a desired or minimum rate of return.

Choice 'b' is incorrect. Internal rate of return (IRR) determines the compound interest rate of an investment where the present value of the cash inflows equals the present value of the cash outflows. The IRR is the discount rate that results in a net present value of zero.

Choice 'c' is incorrect. The discounted payback period is the time period required for discounted cash inflows to equal the initial investment. The time value of money is considered.