Briefly explain why the average rate of return on investment method is better than the payback method

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Briefly explain why the average rate of return on investment method is better than the payback method in judging whether a capital expenditure proposal is acceptable. Does your answer mean that the average rate of return on investment method is a good method for making capital investment decisions? lop5

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Accounting Information For Business Decisions

ISBN: 9780030224294

1st Edition

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley

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