Question
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
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 estimate?
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Managerial Accounting
Authors: James Jiambalvo
5th edition
1118078764, 978-1118078761
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