The accounting rate-of-return method does not consider the time value of money.

Name: The accounting rate-of-return method does not consider the time value of money.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The accounting rate-of-return method only looks at the average net income earned by an investment over a specific period of time, without taking into account the time value of money or inflation. This can lead to inaccuracies in the calculation of the investment's profitability.

The Accounting Rate-Of-Return Method Does Not Consider the Time Value