In property budgeting, why do economists consider return on investment and ARR to be bad-mannered?
quoting from wikipedia, These methods use the incremental cash flows from respectively potential investment, or project. Techniques based on accounting proceeds and accounting rules are sometimes used - though economists consider this to be improper - such as the accounting rate of return, and "return on investment." Simplified and hybrid methods are used as capably, such as payback period and discounted payback spell.
But don't know the reason why they consider it to be ungainly, quick serve please for presentation!
Answers: short answer- capital budgeting verdict makers will roughly focus more on cash flows. the interview is, how much net change inflow will this project generate?
accountants and accounting measurements are more focused on the general financial picture, like for example they will consider depreciation, which is a non-cash expense.
What are priority rules?
Describe around Financial Resources on business strategy?
I get fired by rgis inventory specialists,and they violate my ADA(american ith disabilities act) protection?
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But don't know the reason why they consider it to be ungainly, quick serve please for presentation!
Answers: short answer- capital budgeting verdict makers will roughly focus more on cash flows. the interview is, how much net change inflow will this project generate?
accountants and accounting measurements are more focused on the general financial picture, like for example they will consider depreciation, which is a non-cash expense.