FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Which method does not consider the time value of money? Choose the correct.
A. |
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B. |
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C. |
Average rate of return |
D. |
Profitability Index |
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- Payback Period Modified Payback Period Net Present Value Profitability Index Accounting Rate of Return Internal Rate of Returnarrow_forwardWhich of the following methods consider the time value of money? A. payback and accounting rate of return B. payback and internal rate of return C. internal rate of return and accounting rate of return D. internal rate of return and net present valuearrow_forwardHow do you turn an income statement int a forecasted return? And how is it helpful?arrow_forward
- Define each of the following terms: c. Net present value (NPV) method; internal rate of return (IRR) method;profitability index (PI)arrow_forwardWhat are some possible financial decisions in which using the Future Value (FV) formula might be helpful?arrow_forwardHow can the Calculation of capital-recovery cost (with return)be done?arrow_forward
- Explain an example how to calculate accounting rate of return.arrow_forward18. How should internal rate of return be calculated in terms of Net Present Value?arrow_forwardWhich approach to investment analysis is "best" in terms of accounting for both the timing and amount of revenue streams from a potential investment? A. the payback period B. the simple rate of return C. the net present value D. the internal rate of returnarrow_forward
- The pure time value of money is known as the: Multiple Choice liquidity effect. inflation factor. Fisher effect. term structure of interest rates. interest rate factor.arrow_forwardDescribe the method of developing a Present Worth Distribution?arrow_forwardAn advantage of the internal rate of return method is that a.it considers the time value of money. b.it can rank proposals of equal lives. c.it considers the cash flows of the investment. d.All of these choices are correct.arrow_forward
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