The ____ approach takes into account both the magnitude and timing of cash flows over the entire life of a project in measuring its economic desirability.
A) payback period
B) accounting rate of return
C) average rate of return
D) internal rate of return

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) considers the magnitude and timing of cash flows throughout the life of a project, making it a better measure of economic desirability than the payback period, accounting rate of return, or average rate of return.

The ____ Approach Takes into Account Both the Magnitude and Timing