Which of the following is one of the advantages of the return on investment (ROI)analysis?
A) The profits received are the same as cash.
B) The calculations involved in this method are very difficult.
C) It incorporates the time value of money.
D) It relies on accounting information with which investors are comfortable.

Question

Quizplus · Accepted Answer

Return on Investment (ROI) analysis is advantageous because it uses accounting information, which is familiar to investors, making it easier for them to understand and interpret the results. This method does not necessarily incorporate the time value of money (which is more related to methods like Net Present Value or Internal Rate of Return), nor does it assume profits are the same as cash (since profits can include non-cash items). The calculations for ROI are generally not considered very difficult, especially when compared to more complex financial metrics.

Which of the Following Is One of the Advantages of the Return