Which of the following is the way entities set their required rate of return (RRR) for investments?
A) the RRR is based on their own past performance
B) the RRR is based on industry averages
C) the RRR is determined by comparing the estimated ARR with currently available yields or returns from other investments outside their industries
D) all of the options are methods used by entities to set their RRR
Correct Answer:
Verified
Q9: The formula for the accounting rate of
Q10: It is generally agreed that the accounting
Q11: A likely investment to decrease costs for
Q12: The Pizza Place is considering investing $80
Q13: After an investment decision is made,the next
Q15: The ARR method of investment evaluation:
A)measures profits
Q16: A retailer invests $20 million in capital
Q17: Risk in finance:
A)is defined as the unmeasurable
Q18: A major deficiency of the ARR method
Q19: If average profit before depreciation is $145
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