The major difference between the Net Present Value method and the Annual Rate of Return method in evaluating a capital project is
A) the ARR method is easier for accountants to justify than the NPV method.
B) the NPV method is easier for managers to justify than the ARR method.
C) the ARR method focuses on overall profitability of a project.
D) the NPV method focuses on the overall profitability of a project.
Correct Answer:
Verified
Q45: The profitability index is calculated by dividing
Q66: A post-audit should be performed using
A)a different
Q71: Cleaners, Inc.is considering purchasing equipment costing
Q72: Intangible benefits in capital budgeting would include
Q73: When accepting large capital projects, a company
Q79: The following information is available for
Q87: If a company's required rate of return
Q97: The profitability index
A) does not take into
Q102: A thorough evaluation of how well a
Q118: The internal rate of return is the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents