In calculating the rate of return on average investment

Reference no: EM13575633

1. The net present value capital budgeting method considers all estimated cash flows for the project's expected life. True or False?

2. In calculating the rate of return on average investment, average investment should be calculated as (beginning book value + ending book value)/2. True or False?

3. Accounting rate of return is the simplest capital budgeting method. It gives managers an estimate of how soon they will recover their initial investment. True or False?

Reference no: EM13575633

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