Multiple Choice
Which of the following statements concerning the return on average investment method of capital budgeting is incorrect?
A) It is easy to use.
B) It measures profit in the same way as the income statement.
C) It considers profits over the useful life of the investment.
D) It distinguishes between investments requiring an immediate payment of cash and those where payment is in the future.
Correct Answer:
Verified
Correct Answer:
Verified
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