Which of the following is an advantage of the average accounting return (AAR)? Multiple choice question. It is based on cash flows and market value. It accounts for the time value of money. Its input data are easily available. It uses an arbitrary benchmark cutoff rate.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 12MC: Which of the following does nor assign a value to a business opportunity using time-value...
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Which of the following is an advantage of the average accounting return (AAR)?

Multiple choice question.

It is based on cash flows and market value.

It accounts for the time value of money.

Its input data are easily available.

It uses an arbitrary benchmark cutoff rate.

 

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