Accounting Rate of Return Is the Simplest Capital Budgeting Method

question 132

True/False

Accounting rate of return is the simplest capital budgeting method. It gives managers an estimate of how soon they will recover their initial investment.

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Definitions:

Accident Rates

The frequency or proportion of accidents occurring in a particular context or organization over a specified period.

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of another after the contract has been completed.

Antilock Brakes

A safety system in vehicles that prevents the wheels from locking up and skidding during braking.

Airbags

Airbags are safety devices in vehicles designed to inflate rapidly in the event of a collision, to prevent occupants from striking the interior of the car or each other, thereby reducing injuries.