Lack of consideration of the time value of money is a weakness of the average accounting return method of analysis.
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Q24: In actual practice, managers frequently use the
Q25: The payback period and discounted payback are
Q26: When comparing the payback and discounted payback,
Q27: For most projects, the average accounting return
Q28: A disadvantage with the average accounting return
Q30: IRR uses an arbitrary cutoff number in
Q31: The average accounting return calculation takes the
Q32: The AAR is based on cash flows
Q33: When comparing the payback and discounted payback,
Q34: A firm that only accepts projects for
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