Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 48

The ARR has one specific advantage not possessed by the payback period in that it
A) considers the time value of money.
B) measures the value added by a project.
C) is always an accurate measure of profitability.
D) is more widely accepted by financial managers.
E) considers the profitability of a project beyond the payback period.