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How is an investment projects accounting rate of return defined? Why do the accounting rate of return and internal rate

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How is an investment project’s accounting rate of return defined? Why do the accounting rate of return and internal rate of return on a capital project generally differ?

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...

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There are two ways to define an investment project s acc…View the full answer


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Managerial Accounting Creating Value in a Dynamic Business Environment

Managerial Accounting Creating Value in a Dynamic Business Environment

ISBN: 978-0078025662

10th edition

Authors: Ronald Hilton, David Platt

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Question Posted: April 22, 2014 03:08:36
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