Question
Accounting rates of return are based on accounting income and book value of investment, whereas internal rates of return are based on cash flows and
Accounting rates of return are based on accounting income and book value of investment, whereas internal rates of return are based on cash flows and take into account the time value of money. Under what conditions will the two approaches give you similar estimates?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
