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Which of the following is/are true for the average accounting return method of project analysis? 1. does not need a cutoff raI, II, and IV onlyWhich of the following statements related to annuities and perpetuities is/are correct? 1. Most loans are a form of a perpetuProject A and Project B will require using the same floor space at the main street store of Macys. If the store accepts ProjFor the two-stage dividend growth model, you will find all of the following statements are incorrect except 1. Pt = Dt/R. II.

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Answer #1

In average accounting return computation, the information can be easily identified and this method not consider the time value of money concept. Hence, Option 2 (II and IV only) correct.

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