12-6 Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measure of the return on investment? How about the investment’s internal rate of return (IRR)? 12-7 What...

12-6 Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measure of the return on investment? How about the investment’s internal rate of return (IRR)?

12-7 What should be the decision criterion when using the NPV method to evaluate capital investments? Does the IRR method use the same criterion?