Accounting rates of return are based on accounting income


Accounting rates of return are based on accounting income and book value of investment, whereas internal rates of return are based on cash flows and take into account the time value of money. Under what conditions will the two approaches give you similar estimates?

Solution Preview :

Prepared by a verified Expert
Basic Computer Science: Accounting rates of return are based on accounting income
Reference No:- TGS02516850

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)