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The payback period and the accounting rate of return are two methods of evaluating capital budgeting ...

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The payback period and the accounting rate of return are two methods of evaluating capital budgeting ...

The payback period and the accounting rate of return are two methods of evaluating capital budgeting decisions. Like other approaches, these two methods have advantages and disadvantages.

Required:

a.	What is an advantage of these two methods?

b.	List two disadvantages of the payback period and explain how to calculate

the payback period.

c.	List two advantages and two disadvantages of the accounting rate of return and

explain how to calculate the return.

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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tootsiebrowny Author

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Smart ... Thanks!

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