What is the most preferred method of an investment center manager among investment turnover, residual income, and return on investment? Why is it most preferred? And why is the other not preferred? Explain briefly.

Q: Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof…

A:

Q: There are four main methods of investment appraisal: Accounting Rate of Return, Payback, Net Present…

A: The terms capital budgeting and investment appraisal approaches are interchangeable. An…

Q: As a Businessman and Entrepreneur, which do you think is more important between Return On Asset…

A: ROA is the return on assets and ROI is the return on investment.

Q: How does an investment appraisal technique help companies move in the right direction regarding an…

A: Investment evaluation is significant for brokers since it is a type of principal examination and,…

Q: The following are investment criteria: net present value, payback, profitability index, average…

A: The question is based on the concept of capital budgeting techniques , to ascertain the true worth…

Q: d. Explain why NPV is considered technically superior to Payback and Accounting Rate of Return (ARR)…

A: There are various capital budgeting methods that can be used to assess or evaluate various…

Q: What is investment decision making process ? And example

A: An investment decision refers to how a company's finances are to be invested in various assets in…

Q: What kind of model is often used by the investment companies?

A: INTRODUCTION Investment companies are those companies which provide advisory services to their…

Q: Requirement: 1) Calculate the investment center's Sales Margin, Capital Turnover, Return on…

A: Answer:

Q: why net present value is considered to be superior to internal rate of return as an investment…

A: Investment- The purchase of an asset in order to generate income or capital gain is referred to as…

Q: Explain the rationale behind the

A: We have  to explain the aim behind the choice in selection of active and passive investment strategy…

Q: Evaluation of the performance of an Investment center should only Include financial measures. True…

A: An investment centre is a business unit in a firm that can utilizes capital to contribute direct to…

Q: While comparing investment returns is an important starting point in evaluating investment…

A: Following are the steps involved in the performance analysis of investments:Identification of the…

Q: explain how return on investment might lead a divisional manager to reject new investments

A: Return on investment (ROI):   This financial ratio evaluates how efficiently the assets are used in…

Q: what differentiates a superior investment manager from an inferior one?

A: 1. Superior investment managers are having a better degree of control over their emptions in…

Q: What information is considered a necessary evil in constructing an investment policy statement?

A: Provide appropriate guidance on portfolio construction and management Maintain focus on the…

Q: How behavorial bias affect investment behavior?

A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…

Q: 1. Why methods and tools of the statistics are so important in investment decision making.

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: What is the main drawback of using income from operations to measure the effectiveness of investment…

A: Introduction: Investment centers are firms that invest in other businesses to increase their…

Q: Why should the financial manager include opportunity cost but ignore sunk costs when evaluating a…

A: Capital investment is defined as an amount, which used to get invested in the corporation for…

Q: Factors affecting investment decisions

A: Introduction: The Investment decision is the decision taken by shareholders or top-level management…

Q: Discuss the pros and cons of the accounting rate of return as an investment criterion.

A: Definition: Average rate of return method: The average rate of return is the amount of income that…

Q: ent center manage

A: Rate of investment  :money is a metric that's wide wont to live the likelihood of gaining a come…

Q: Which of the following statements is true regarding the sensitivity analysis approach to investment…

A: In simple words we can understand the basic meaning of Sensitivity analysis " Whenever manager takes…

Q: Explain how differential weight to losses and gains effect investment decisions?

A: Prospect Theory assigns differential weight to losses and gains for making investment decisions.

Q: What company is better in short term investment?

A: Answer:-  Investment meaning:- An asset or object purchased with the intention of generating income…

Q: What is the investment center manager's preferred technique of calculating investment turnover,…

A: It is a unit of a firm that is evaluated based on the usage of its capital rather than the profits…

Q: Show and contrast how return on investment and residual income are used to evaluate the performance…

A: ROI  (return on investment =  ( Net Profit / Cost of the investment) X  100    Residual income =…

Q: How do you measure Return on Investment (ROI) of alogistics firm?

A: Return on Investment (ROI) :               It represents the benefits earned by the investor in…

Q: s it important to identify what costs will be eliminated in the conduct of finan

A: Turnaround recovery ways are a variety of measures that corporations use to get over a amount of a…

Q: Which is the single most important criterion for investment decisions?

A: NPV computes the existing value of future benefits by discounting future cash flows with a given…

Q: Show and compare how return on investment and residual income are used to evaluate the performance…

A: Introduction: It refers to the average return on an investment over a specific period. It's…

Q: What is meant by an investment project’s internal rate of return? How is the internal rate of return…

A:

Q: What are the main constraints or obstacles to implementing the investment management concept?

A: Investment management refers to the management of assets of an individual by the firm. It will…

Q: Which statement below best describes an investment center? a. The authority to make decisions…

A: Definition: Responsibility center: The departments of the organization are generally referred to as…

Q: Explain and compare how return on investment and residual income are used to evaluate investment…

A: It basically means the average return on an investment in a particular period in which the…