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Which of the Following Steps Are Involved in the Calculation

Question 10

Multiple Choice

Which of the following steps are involved in the calculation of the accounting rate of return of a proposed project? Please select all that apply.


A) Calculate the total cash inflows expected from the proposed project.
B) Calculate total depreciation expected on the total investment in the proposed project.
C) Calculate the discount rate at which the total cash inflows from the proposed project equal the total cash outflows from the proposed project.
D) Calculate the average capital employed over the life of the proposed project.

Correct Answer:

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