alleryStart learning →A known weakness of ROI as a measure is that it is not what?
AA percentage
BTime-adjusted
CRelated to profit
DSimple to read
Answer & Solution
Correct answer: B. Time-adjusted
Unlike net present value, ROI does not adjust for the timing of cash flows.
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Related questions
Group units in tax rates of 25% and 40%. Shifting Rs 10 lakh profit to the lower-tax unit Why can ROI figures be manipulated?A division earns Rs 36 lakh profit on Rs 240 lakh invested. Its ROI is what?The cost of capital is best described as what?RONA is 16%, required return 12% and net investment Rs 800 lakh. EVA?NOPAT of Rs 72 lakh on capital of Rs 400 lakh gives RONA of what?When is value created, according to the EVA idea?What does the capital charge in EVA represent?