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A Strength of the Average Accounting Return (AAR) Method of Project

Question 99

Multiple Choice

A strength of the average accounting return (AAR) method of project analysis is the fact that AAR: 


A) ignores the issue of taxes. 
B) uses a cutoff rate. 
C) considers the time value of money. 
D) is easy to calculate. 
E) is based on accounting values. 

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