Which of the following decision rules has the advantage that the information needed for the calculation is readily available?
A) Net present value
B) Internal rate of return
C) Average accounting return
D) Payback period
E) Discounted payback

Question

Quizplus · Accepted Answer

The average accounting return (AAR) uses accounting information that is typically readily available from financial statements, making it easier to calculate compared to other methods that require cash flow projections or discount rates.

Which of the Following Decision Rules Has the Advantage That