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Which of the following is NOT TRUE of the Accounting Rate of Return (ARR) as a form of capital investment appraisal? A. It is based
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Which of the following is NOT TRUE of the Accounting Rate of Return (ARR) as a form of capital investment appraisal?
A. It is based on accounting profits so it may be manipulated
B. Its use of net cash flows emphasises the importance of liquidity
C. It fails to consider the time value of money
D. It considers the whole projects life unlike payback period which ignores cashflows after the payback period
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