Match the following:
1. accounting rate of return
2. internal rate of return
3. payback
4. net present value
a. is only concerned with the time it takes to get cash outflows returned.
b. considers operating income but not the time value of money in its analyses.
c. compares the present value of cash outflows to the present value of cash inflows to determine investment worthiness
d. the true rate of return an investment earns.

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?