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  3. Study Set
    Contemporary Accounting
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    Exam 18: Capital Investment Decisions
  5. Question
    Describe the Major Disadvantages of Using the Accounting Rate of Return
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Describe the Major Disadvantages of Using the Accounting Rate of Return

Question 45

Question 45

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Describe the major disadvantages of using the accounting rate of return (ARR) and payback period methods as bases for evaluating capital projects.

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Disadvantages of ARR...

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