What question did this study set out to answer?

To examine the applicability of the rate of return concept in capital budgeting processes and its importance in investment decisions.

March 18, 2026The Accounting Review

Rate of Return: Some Comments in Its Applicability in Capital Budgeting.

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Authors

VBVictor H. BrownAdvisory Board Company (United States)

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Implication

Analysis of rate of return's role in assessing profitability of capital investment opportunities, implying its significance for effective decision-making.

Key Points

To examine the applicability of the rate of return concept in capital budgeting processes and its importance in investment decisions.
Discusses the concept of rate of return in relation to capital budgeting.
Evaluates cash flows and investment profitability.
Analyzes the time value of money in financial evaluations.
Identifies rate of return as crucial for appraising investment opportunities.
Highlights that rate of return considers cash flows against initial investment.
Concludes that effective capital rationing depends on accurate profitability assessments.

Cite This Study

Victor H. Brown (1961) studied this question.

synapsesocial.com/papers/69ba43a84e9516ffd37a515a https://doi.org/10.2308/tar-7095780

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Implication

Analysis of rate of return's role in assessing profitability of capital investment opportunities, implying its significance for effective decision-making.

Rate of Return: Some Comments in Its Applicability in Capital Budgeting.

Discussion

Member takes

Implication

Key Points

Cite This Study

Rate of Return: Some Comments in Its Applicability in Capital Budgeting.

Discussion

Member takes

Implication

Key Points

Cite This Study

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