Managers consider projects acceptable if the AARR exceeds a specified hurdle required rate of return.

Name: Managers consider projects acceptable if the AARR exceeds a specified hurdle required rate of return.
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

This statement is true. Managers use the average accounting rate of return (AARR) to evaluate projects and determine if they exceed the required rate of return (hurdle rate) for funding approval. If the AARR is equal to or higher than the hurdle rate, the project is considered acceptable.

Managers Consider Projects Acceptable If the AARR Exceeds a Specified