Which One of the Following Is an Advantage of the Accounting

question 61

Multiple Choice

Which one of the following is an advantage of the accounting (book) rate of return (ARR) method for analyzing capital investment proposals?

• A) It is not affected by different accounting methods.
• B) It is precise and objective.
• C) Data for calculating the return are typically readily available.
• D) The method explicitly adjusts for the time value of money.
• E) ARR is generally approximately equal to a project's internal rate of return (IRR).

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