Which of the following is not an appropriate method used in evaluating proposed capital investments?
A)Net present value
B)Payback period
C)Carrying value of equipment
D)Accounting rate of return

Question

Quizplus · Accepted Answer

Carrying value of equipment is not a method used in evaluating proposed capital investments. It is a financial accounting term that represents the net value of an asset on the company's balance sheet, calculated as its acquisition cost minus accumulated depreciation. The appropriate methods used in evaluating proposed capital investments are net present value, payback period, and accounting rate of return.

Which of the Following Is Not an Appropriate Method Used