Which one of the following does not describe a limitation of the accounting rate of return method of capital investment appraisal?
A) It ignores the time value of money.
B) It is a percentage rather than an absolute value.
C) Fails to distinguish between projects that repay the majority of the initial investment in the early years of the project's life.
D) Cannot be used in situations where cash flows turn from being inflows to outflows and back again.
Correct Answer:
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