Which of the following is a characteristic of the payback method of capital investment appraisal but not a characteristic of the accounting rate of return?
A) A measure based on a percentage return rather than a measure based on total cash inflows - total cash outflows.
B) A relative rather than an absolute measure.
C) Ignores the time value of money.
D) Distinguishes between projects with higher and lower initial net cash inflows.
Correct Answer:
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Q2: Costing and capital investment both aim to
Q3: Capital investment = the acquisition of short-term
Q4: Which one of the following statements does
Q5: Capital investment appraisal takes into account opportunity
Q6: Why do organizations undertake capital investment appraisal?
Q8: Which one of the following statements does
Q9: Which of the following statements do not
Q10: Which of the following steps are involved
Q11: Which one of the following would not
Q12: As the discount rate applied to the
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