In Making Investment Decision,the Potential Return on Possible Projects Is

question 21

True/False

In making investment decision,the potential return on possible projects is largely irrelevant and therefore not analysed.

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Definitions:

Service Departments

Units within an organization that provide support services to other departments but do not directly contribute to revenue generation.

Return On Investment

A measure used to evaluate the profitability of an investment, calculated as a ratio of net profit to the initial cost of the investment.

Invested Assets

Assets that are purchased or acquired for the purpose of generating income or appreciating in value, such as stocks, bonds, and real estate.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue, indicating the firm's profitability over a specific period.