The internal rate of return method provides a rate of return that approximates:   Both the accounting rate or return and the unadjusted rate of return Neither the accounting rate of return nor the unadjusted rate of return The unadjusted rate of return The accounting rate of Return

Q: Distinguish the nominal rate of return from the real rate of return.

A:

Q: Need help with a and b as well as the last question on whether the internal rate of return is the…

A: Part 2: Explanation:Step 1: Assessing the Best Business VentureTo determine the best business…

Q: Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof…

A:

Q: Which of the following is not an advantage of the average rate of return method? a.includes the…

A: Average rate of return is a method of calculating return on the asset

Q: Why are the net present value and the internal rate of return models superior to the payback period…

A: The net present value and internal rate of return techniques are superior to the payback method…

Q: r to pay un

A: Horizontal analysis :  Financial analysts use horizontal analysis, also known as trend analysis or…

Q: ected rate of return concept differ from that of the rea

A: There are many method of valuation of stock based on expected rate and realized return and dividends…

Q: Please explain the difference between the terms interest rate and required return by defining each.

A: The amount which is charged by the lender to the borrower in order the use assets is known as the…

Q: Which of the following correctly orders the investment rules of average accounting return (AR),…

A: Capital budgeting is method of selecting projects among available projects so as to increase value…

Q: Describe the accounting when there is a right of return.

A: The right of return entitles a customer to a full or partial refund of the amount paid or a credit…

Q: Which one of the following is most closely related to the net present value profile? A: Payback B:…

A: The net present value method is used to evaluate the investment projects. We can evaluate the…

Q: Which of the following is NOT a profitability ratio? Select one: a. Return on Equity b. Net Profit…

A:

Q: What is the accounting rate of return?

A:

Q: What are the different terms used to refer to the rate of return?

A: Rate of return is an expected profit on an investment by a investor. It is a rate at which investor…

Q: Explain an example how to calculate accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: Describe the rules of accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: A firm purchased a computer for 1500 EUR; the computer is used for 4 years and is then sold for 500…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The discount rate used in a net present value analysis is the​ ________.   A. rate of interest…

A: Net present value is calculated by the deducting the present value of cash outflows from the present…

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: Explain different terms are used to refer to rate of return?

A: Answer: Rate of return is nothing but the returns that are expecting on investments made by…

Q: Matching Principle Concept How does interest expense associate with revenue?

A: The matching principle is a fundamental concept in accounting that dictates that expenses should be…

Q: Which of the following is a disadvantage of the average rate of return method? a. fails to…

A: The question is asking about the disadvantages of the average rate of return method in accounting.…

Q: Define exposure, differentiating between accounting and economic exposure. What role does inflation…

A: Exposure means uncontrollable future events which can affect adversely. In the mechanism of exchange…

Q: Which of the following ROIs uses the income computed under the accrual basis? A. Accounting rate…

A: The question is related to Capital Budgeting.

Q: Give an example of a strength and a weakness of the accounting rate of return approach.

A: ARR stands for accounting rate of return, is a formula which computes the desired rate of return in…

Q: Describe the accrual accounting rate-of-return method. What are its main strengths and weaknesses?

A:

Q: What is a “required rate of return”? Why is it called the “cost ofmoney” or the “price of money”?

A: The required rate of return can be calculated by two methods, 1) Gordan's growth model  Gordan's…

Q: Is the accounting rate of return (ARR) the same thing as the return on investment (ROI)?

A: Yes, Accounting rate of return (ARR) the same thing as the Return on investment (ROI). The…

Flow of Funds

The flow of funds is the financial accounts of the nation, which monitor and control the cash flow among various sectors or industries, or markets. Central banks use these flow of funds statements to acquire macroeconomic data, to publish cash inflow and cash outflow statements of the nation. This flow of funds system is utilized to identify economic activity and changes in the economy. It is used by Federal Reserve to determine the Gross Domestic Product (GDP) of the nation and to implement monetary policy and fiscal policies.