Ask Question
BusinessBusiness
9 July, 13:29

Two methods of analyzing potential capital investmentslong dashpayback and accounting rate of returnlong dashignore the time value of money. True False

+1
Answers (1)
  1. 9 July, 14:14
    0
    True

    Explanation:

    Various methods are used to analyse and estimate capital investment. The most used and important method is the net present value, and it accounts for the time value of money. The two methods which do not account for the time value of money are Payback period and accounting rate of return. These two methods are considered vague, and wrong because they do not account for the time value of money.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Two methods of analyzing potential capital investmentslong dashpayback and accounting rate of returnlong dashignore the time value of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
On which dates are cash dividends recorded? a. Entry field with incorrect answer b. Declaration date and the record date c. Record date and the payment date d. Declaration date, record date, and payment date e. Declaration date and the payment date
Answers (2)
O'Dell Vegetables purchased a harvesting machine on July 1, 2016, for $984,000. The machine was estimated to have a useful life of 8 years with an estimated salvage value of $140,000. O'Dell uses the straight-line method of depreciation.
Answers (1)
Hudson Furniture specializes in office furniture for self-employed individuals who work at home. Hudson's furniture emphasizes style rather than utility and has been quite successful.
Answers (1)
A country recently experienced a drop in consumer purchases and a rise in business inventories of durable goods. Wages grew slowly and unemployment increased. Business investment in plant and equipment dropped sharply and profits fell.
Answers (1)
The number of days' sales in receivables A. is an estimate of the length of time the receivables have been outstandingB. measures the number of times the receivables turn over each yearC. is Net Credit Sales divided by Average ReceivablesD.
Answers (1)
New Questions in Business
Which of the following transactions is considered a "Vendors and Expenses" transaction? A. Invoice B. Receive Payment C. Pay Bills D. Make Deposit
Answers (1)
What caused the Great Recession of 2008-2009? Question 36 options: housing market colapse stock market crash People buying stocks on the margin increased oil prices
Answers (2)
Mike and Sue McCloskey make sure to share their vision with their workforce, also known as the Fair Oaks family. They also welcome feedback on this vision.
Answers (1)
According to the dual labor market hypothesis, the secondary market consists of:
Answers (1)
Can a company refuse to hire a candidate based on race, gender, ethnicity, or sexual preference?
Answers (2)
Home » Business » Two methods of analyzing potential capital investmentslong dashpayback and accounting rate of returnlong dashignore the time value of money. True False
Sign Up Forgot Password?