The time value of money is ignored by the payback period and the accounting rate of return.

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The time value of money is ignored by the payback period and the accounting rate of return. Explain why this is a major deficiency in these two models.

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Cost Management Accounting And Control

ISBN: 9780324233100

5th Edition

Authors: Don R. Hansen, Maryanne M. Mowen

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Question Posted: Jun 10, 2024 01:28 AM

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The time value of money is ignored by the payback period and the accounting rate of return.

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Cost Management Accounting And Control

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