Which of the following statements are false ........

Principles of Accounting & Financial Management Capital Budgeting

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Which of the following statements are false?

Cash flows and accounting profit are same.

Cash flows are profit before depreciation but after tax.

Net Present value method is based on cash flows.

Average rate of return method is based on cash flows.

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Explanation:

The average rate of return is the average annual amount of cash flow generated over the life of an investment. This rate is calculated by aggregating all expected cash flows and dividing by the number of years that the investment is expected to last.