Unadjusted rate of return over the payback method


Which of the following does not represent an advantage of the unadjusted rate of return over the payback method for evaluating capital projects?

A. The unadjusted rate of return is a percentage that can be compared to a stated hurdle rate.

B. The unadjusted rate of return method considers the recovery of the initial investment in the project.

C. The unadjusted rate of return method considers the investment's profitability.

D. All of these are advantages

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Accounting Basics: Unadjusted rate of return over the payback method
Reference No:- TGS066635

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