Cornerstones of Managerial Accounting Study Set 2
Quiz 14: Capital Investment Decisions
A Major Evolutionary Innovation Found in ________ Is the Internal
The internal rate of return is the least widely used of the capital investment techniques.
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One drawback to the internal rate of return model is that cash inflows must occur evenly over the life of the investment.
A postaudit evaluates the overall outcome of the investment and proposes corrective action if needed.
In general, it is best if postaudits are done by company management, since they understand the actual operating conditions.
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