The average rate of return measure takes time of value money into account True False

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The average rate of return measure takes time of value money into account True False

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Answer 1

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Answer: The above statement is False

Average rate of return do not consider time value of money into account as it do not use the time value of money in evaluating investment made.

It is a formula that represents percentage of return on an investment or assets or average investment over life of project. The average rate of return is always a percentage return.

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Answer 2

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