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Which of the following is a disadvantage of using the average accounting return (AAR) rule for capital budgeting? 1)It is biased toward liquidity

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Which of the following is a disadvantage of using the average accounting return (AAR) rule for capital budgeting?

1)It is biased toward liquidity.

2)It is difficult to calculate.

3)It is biased against long-term projects.

4)It is not based on market value.

5)The information needed to calculate the AAR is difficult to obtain.