Asked by anmol setia on Jun 12, 2024
Verified
The simple rate of return, rate of return on assets and the unadjusted rate of return are synonymous with:
A) the accounting rate of return.
B) the payback method.
C) the internal rate of return.
D) discounted cash flow.
Accounting Rate of Return
A financial metric that measures the return on investment expected from a project or asset, calculated as the average annual profit divided by the initial investment cost.
Simple Rate of Return
A calculation that estimates the profitability of an investment, without factoring in the time value of money or cash flows over time.
Unadjusted Rate
A rate or measure that has not been modified to account for factors or variables that could affect its interpretation or accuracy.
- Absorb the basics of capital budgeting and distinguish its diverse approaches.
Verified Answer
Learning Objectives
- Absorb the basics of capital budgeting and distinguish its diverse approaches.
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