Which of the following is NOT a method used to evaluate capital budgeting for IT projects?

The breakeven analysis is not typically considered a formal method for evaluating capital budgeting specifically for IT projects. In capital budgeting, the focus is primarily on the expected financial return of an investment relative to its total cost over time, involving metrics that incorporate the time value of money and profitability.

The payback method determines how long it takes to recover the initial investment, providing insights into risk and liquidity but not necessarily accounting for the profitability after recouping the investment. The accounting rate of return focuses on the net income attributable to the investment relative to its initial cost, offering a straightforward percentage that can be easily communicated.

Net present value (NPV) evaluates the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over time, which reflects how well the project is expected to perform financially over its lifespan using discounted cash flow techniques.

While breakeven analysis can help assess when an investment will start generating positive cash flow, it does not provide a comprehensive assessment of the project's financial viability in the way that the other methods do, making it less suitable for evaluating capital budgeting specifically for IT investments.