Which of the following method is not based on concept of time value of money? A. Discounted payback period B. Accounting rate of return C. Profitability index D. Modified internal rate of return
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A:
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- Which of the following does nor assign a value to a business opportunity using time-value measurement tools? A. internal rate of return (IRR) method B. net present value (NPV) C. discounted cash flow model D. payback period methodWhat is the difference between the discount rate used for net present value and the internal rate of return methods?Which method does not consider the time value of money? Choose the correct. A. Net present value B. Internal Rate of Return C. Average rate of return D. Profitability Index
- Which one of the following methods is based on net profit rather than cash flows? a. net present value b. payback c. internal rate of return d. accounting rate of return e. profitability indexWhich of the following methods consider the time value of money? A. payback and accounting rate of return B. payback and internal rate of return C. internal rate of return and accounting rate of return D. internal rate of return and net present valueQuestion: 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
- How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?Describe the accrual accounting rate-of-return method. What are its main strengths and weaknesses?Which of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection Period
- Describe the rules of accounting rate of return.Which of the following ROIs uses the income computed under the accrual basis? A. Accounting rate of Return (ARR) B. Internal rate of return (IRR) C. Payback reciprocal D. True rate of returnWhich one of the following is most closely related to the net present value profile? A: Payback B: Discounted payback C: Profitability index D: Average accounting return E: Internal rate of return