[Solved] Which of the following is not a disadvantage of rate of return method of capital budgeting?

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Q.	Which of the following is not a disadvantage of rate of return method of capital budgeting?
A.	It ignores the time value of money
B.	It uses the earnings of a project up to the payback period only
C.	It does not take into consideration cash flows
D.	This method can not be applied to a situation where investment in a project is to be made in parts.
Answer» B. It uses the earnings of a project up to the payback period only

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