Question

which of the following does NOT represent an advantage of the unadjusted rate of return over the payback method for evaluating capital projects?-the unadjusted rate of return method considers the investment's profitability-the undadjusted rate of return method measures the recovery of the initial investment in the project-the unadjusted rate of return is a percentage that can be compared to a stated hurdle rate-all of the above are advantages

Answer 1

(B)the rate of return wll measure the recovery of the initial investment

Step-by-step explanation:

(A)The rate of return will consider the investment profitability

While the payback is just focus on weather or not the project recover the intial invesment.

(C) the unadjusted rate of return is a percentage that can be compared to a stated hurdle rate. The rate of return is a percent, while the payback period is a measurement of time, in years or month.

(B)the rate of return wll measure the recovery of the initial investment

That is the payback method main point.

The rate of return cannot easily determinate the payback period.