Question: Identifying the drawbacks of the average accounting return method ( APR ) , we find that: ( More than one answer may be correct )

Identifying the drawbacks of the average accounting return method (APR), we find that: (More than one answer may be correct)
It relies on accounting net income and book values.
It is heavily influenced by cash flows and market values.
It fails to account for the time value of money.
It depends on an arbitrary benchmark cutoff rate.
Identifying the drawbacks of the average

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!