A compendium and comparison of 25 project evaluation techniques. Part 2: Ratio, payback, and accounting methods

This two-part paper presents 25 different methods and techniques used to evaluate the economic desirability of projects. The paper categorized these 25 methods into 5 types: net present value methods, rate of return methods, ratio methods, payback methods, and accounting methods. They provide insight into the advantages and limitations of these project evaluation methods by comparing and contrasting them. Many examples are included to illustrate the use of these methods. In Part 1, the authors examined net present value and rate of return methods. In Part 2, they examine ratio, payback, and accounting methods. A recap, comparison, and full summary of all 25 methods is included at the end of Part 2.