Question

The average rate of return is a measure of profitability computed by dividing the average annual...

The average rate of return is a measure of profitability computed by dividing the average annual cash inflows from an asset by the average amount invested in the asset.

True

False

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The annual dividend yield is computed by dividing _____ annual dividend by the current stock price....
The annual dividend yield is computed by dividing _____ annual dividend by the current stock price. Multiple Choice this year's last year's next year's the past 5-year average the next 5-year average
Question 1:All of the following are considered cash inflows except the: A. future residual value of...
Question 1:All of the following are considered cash inflows except the: A. future residual value of the capital investment B. future additional operating costs of the investment C. future savings in ongoing cash operating costs D. future cash revenue generated by the investment Question 2:Capital budgeting methods which incorporate the time value of money include the A. average rate of return B. accounting rate of return C. net present value method D. payback method Question 3: Net present value is...
1) Which of the following is NOT an advantage to using the average rate of return...
1) Which of the following is NOT an advantage to using the average rate of return method? It is easy to compute. It includes the entire amount of income earned over the life of the proposal. It emphasizes accounting income, which is often used by investors and creditors in evaluating management performance. It directly considers the expected cash flows from the proposal. 2) The present value index is computed as the total present value of net cash flow divided by...
1.The median is a measure of central tendency (or location)? True False 2,The mean computed from...
1.The median is a measure of central tendency (or location)? True False 2,The mean computed from ungrouped data is a more accurate measure than the mean computed from grouped data? True False 3.The mode for the following values is "0"?...3.4, 4.7, 1.9, 7.6, 6.5. True False 4.A distribution of data that is positively skewed is left skewed? True False 5.In a numerical batch of data the value of "Q3" can never be smaller than the value of "Q1"? True False  ...
The rate of return on total assets is calculated by first subtracting interest expense from net...
The rate of return on total assets is calculated by first subtracting interest expense from net income and then dividing the result by average total assets. True False
Book rate of return and profitability index are the two most commonly used investment criteria. True...
Book rate of return and profitability index are the two most commonly used investment criteria. True False The IRR rules states that you invest if the project IRR is greater than the opportunity cost of capital. True False
You have below a table on the amount of investment and the average Rate of Return...
You have below a table on the amount of investment and the average Rate of Return on a portfolio of investments. Using the information in the table, prepare a table showing: The share of the total asset for each investment (A, B, C & D) What is the weighted average Rate of Return of the portfolio of investments? Investment (I) Amount Invested Rate of Return (K) A $25,000 8% B $35,000 7% C $42,000 10% D $48,000 4%
When the annual cash flows are unequal, the payback period is computed by adding the annual...
When the annual cash flows are unequal, the payback period is computed by adding the annual cash flows until such time as the original investment is recovered. If a fraction of a year is needed, it is assumed that cash flows occur evenly within each year. The steps for determining the payback period with uneven cash flows is as follows: Add the annual cash flows to one another until the investment is recovered. For each full year's worth of cash...
Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows without Disinvestment Juliana is...
Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows without Disinvestment Juliana is considering an investment proposal with the following cash flows: Initial investment-depreciable assets $49,000 Net cash inflows from operations (per year for 10 years) 7,000 Disinvestment 0 For parts b. and c., round answers to three decimal places, if applicable. a. Determine the payback period. Answer years b. Determine the accounting rate of return on initial investment. Answer c. Determine the accounting rate of return...
Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows without Disinvestment Juliana is...
Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows without Disinvestment Juliana is considering an investment proposal with the following cash flows: Initial investment-depreciable assets $49,000 Net cash inflows from operations (per year for 10 years) 7,000 Disinvestment 0 For parts b. and c., round answers to three decimal places, if applicable. a. Determine the payback period. Answer years b. Determine the accounting rate of return on initial investment. Answer c. Determine the accounting rate of return...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT