Outline two disadvantages of using ARR as a method of capital investment appraisal.
Question:
Outline two disadvantages of using ARR as a method of capital investment appraisal.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (4 reviews)
The Accounting Rate of Return ARR is a method used to assess the profitability of an investment by c...View the full answer
Answered By
Krishnavendra Y
I am a self motivated financial professional knowledgeable in; preparation of financial reports, reconciling and managing accounts, maintaining cash flows, budgets, among other financial reports. I possess strong analytical skills with high attention to detail and accuracy. I am able to act quickly and effectively when dealing with challenging situations. I have the ability to form positive relationships with colleagues and I believe that team work is great key to performance. I always deliver quality, detailed, original (0% plagiarism), well-researched and critically analyzed papers.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Cambridge International AS And A Level Accounting
ISBN: 9781444181432
1st Edition
Authors: Ian Harrison
Question Posted:
Students also viewed these Business questions
-
Outline two advantages of using ARR as a method of capital appraisal.
-
Identify two disadvantages of using NPV as a method of capital investment appraisal.
-
Trans Jamaica Corporation wishes to invest in one of three transport infrastructure projects X, Y and Z with initial outlays of $500 million, $390 million and $650 million respectively. Projects are...
-
3. How do the marginal costs of pollution reduction and the marginal costs of pollution damage change as pollution levels increase? The marginal costs of pollution reduction remain constant and the...
-
Suppose that a country follows a managed-float policy but that its exchange rate is currently floating freely. In addition, suppose that it currently has a massive current account deficit. Does it...
-
One graph in the ï¬gure at the top of the next column represents a normal distribution with mean µ = 8 and standard deviation Ï = 2. The other graph represents a normal...
-
Which way does the north pole of a compass needle point in the Southern Hemisphere?
-
The direct materials and direct labor data shown on the next page pertain to the operations of Solario Manufacturing Company for the month of August. Instructions(a) Compute the total, price, and...
-
calculate both intrinsic value and time value for the options that you have picked. ANZ GROUP HOLDINGS LIMITED ANZ LAST PRICE / TODAY'S CHANGE $25.280+$0.350 (1.403 %) Industry Group: Banks VOLUME...
-
Initial investment $100000; additional working capital required $20000. Calculate the average investment.
-
If a business has a return on capital employed of 23 per cent, what will be the minimum return necessary in order to undertake a new project?
-
Is it possible for compound semiconductors to exhibit intrinsic behavior? Explain your answer.
-
What is competing on analytics? Why is competing on analytics important? Are business decisions solely based upon data? What other inputs go into managerial decision making? Provide examples
-
suppose a beaker is placed on a balance (scale) and different volumes of a liquid are poured into it. Furthermore, suppose the mass of the beaker plus the liquid is recorded each time, and the...
-
(a) Cactus Sdn. Bhd. has no debt outstanding and a total market value of RM150,000. Earnings before interest and taxes, EBIT, are projected to be RM25,000 if economic conditions are normal. If there...
-
What would a more comprehensive CSR plan for Host Europe look like? What kind of measures, and tracking could be introduced, without putting Host Europe's economic success at risk?
-
A Markov {Xn}n chain has two states: {0,1}. At steady state, the transition probabilities are p(Xn+1 = 1|Xn = 0) = 0.8 p(Xn+1 = 0|Xn = 1) = 0.4 Find the probability p(xn = 0) at steady state.
-
Find the mean of the data summarized in the given frequency distribution. Also, compare the computed means to the actual means obtained by using theoriginal list of data values, which are as follows:...
-
Fred Farmer needs to prepare a balance sheet for his bank. He spent the day getting the following information. Fred needs your help to build a balance sheet and evaluate it. The information was...
-
Explain why there is a need to have internationally recognised International Accounting Standards.
-
A company that has made an operating loss for a year does not need to prepare a statement of cash flows. However, it must resume preparing a statement when it moves back into profitability. Is this...
-
Explain how net debt is calculated.
-
Find the area of each. 1) 60 ft 15 yd 10.5 yd
-
You have sampled the soil of your garden and it has a soil organic carbon (SOC) content of 5.39 % SOC. Our class notes on organic matter give a simple method for converting between SOC and soil...
-
Mr. Ribaya would like to save Php. 500, 000 for his son's college education. How much should he deposit in a savings account every 6 months for 12 years if interest is at 1% compounded semi -...
Study smarter with the SolutionInn App