The only method of evaluating capital investment projects that uses annual net income instead of annual net cash flows in its calculation is the

Select one:

a$.$ Net present value $($NPV$)$ method.

b$.$ None of the methods use annual net income in their calculation.

C$.$ Accounting rate of return $($ARR$)$ method.

d$.$ Internal rate of return $($IRR$)$ method.

e$.$ Payback period method.