The most accurate way to analyze the profitability of an investment is to compute the payback period.
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The most accurate way to analyze the profitability of an investment is to compute the payback period.
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- A realized return is the rate of return actually earned on an investment. Group of answer choices True False1. True or false. to apply the rate of return analysis correctly, we need to classify an investment i as either simple or non-simpleWhich of the following methods does not consider the investment’s profitability? a. ARR b. Payback c. NPV d. IRR
- Make a simple example of the following: a. Capital Gain (or Losses) b. Expected Return c. Real Return d. Risk-free Return e. Required Return f. Holding Period ReturnDiscuss how the Accounting Rate of Return as an investment appraisal method is better than the Net Present Value method.Which of the following decision criteria is the easiest to use and very popular among investors? O Payback period. O Internal rate of return. O Average accounting return. Net present value. O Discounted return on investment.
- Which approach to investment analysis is "best" in terms of accounting for both the timing and amount of revenue streams from a potential investment? A. the payback period B. the simple rate of return C. the net present value D. the internal rate of return(b) Explain the relationship between net present value and internal rate of return, and show how they may offer complementary methods for evaluating investments.This method evaluates the return of an investment by dividing the annual average income by the average investment, Select one: a. Discounted Approach b. Simple rate of return Method c. Cash Payback Method d. Internal Rate of Return Method