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The primary advantages of the average rate of return method are its ease of computation and...

The primary advantages of the average rate of return method are its ease of computation and the fact that

A. It is especially useful to managers whose primary concern is liquidity

B. Rankings of proposals are necessary

C. There is less possibility of loss from changes in economic conditions and obsolescence when the commitment is short-term

D. It emphasizes the amount of income earned over the life of the proposal

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Answer #1

OPTION D= IT EMPHASIZES THE AMOUNT OF INCOME EARNED OVER THE LIFE OF THE PROPOSAL.

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