美国代写assignment accounting rate of return.

by | 19-Jan-2013 | 论文代写

美国代写assignment

Non Discounted Methods:

 

Two popular methods that do not consider the time value of money are the payback period and the average accounting rate of return.

 

As per the payback period, the shorter the time to recoup the original investment, the better is the project. In this contract, the time to recoup the original investment is 2 years and hence it seems to be acceptable. The biggest advantage of this method is that it is simple to calculate and is not time consuming compared to discounted techniques. It can be a good method to screen several projects on an approximate basis. However, its biggest drawback is that it does not consider the time value of money. As such, there may be case which may seem acceptable as per the payback period but if the present value of the cash flows are considered, it is not acceptable.

 

Another method is the average accounting rate of return which computes the average accounting return as the average net profits earned over the initial investment. The advantage is the same like the simplicity and ease of computation but its biggest drawback is that it does not consider the time value of money and can lead misguiding results.

Both these methods can be used in initial screening of the projects but cannot be used as a final tool for evaluation.

美国代写assignment

两个流行的,不考虑货币的时间价值的方法是回收期法和平均收益率。

按投资回收期的时间,以收回原始投资短,更好的是项目。在本合同中,时间收回原始投资2年,因此似乎是可以接受的。该方法最大的优点是计算简单,不耗费时间与贴现技术。它可以对屏幕的几个项目,一个近似的基础上的一种好方法。然而,其最大的缺点是它不考虑货币的时间价值。因此,有可能的情况下,似乎是可以接受的,但如果每回收期的现金流量的现值都认为,这是不可接受的。

另一种方法是返回计算平均会计收益率平均会计率平均净利润超过初始投资。其优点是相同的,它不考虑货币的时间价值,可能会导致误导的结果的简单和易于计算,但它最大的缺点是。

这两种方法可用于初步筛选的项目,但不能作为评价一个最终的工具。

 

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