Describe the accrual accounting rate-of-return method. What are its main strengths and weaknesses? Describe the accrual accounting rate-of-return method. The accrual accounting rate-of-return is a method for analyzing the financial aspects of projects that A. divides an accrual accounting measure of average annual income of a project by an accrual accounting measure of investment. B. measures the time it will take to recoup, in the form of expected future net cash inflows, the net initial investment in a project. C. calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows back to the present point in time using the required rate of return. D. calculates the discount rate at which an investment's present value of all expected cash inflows equals the present value of its expected cash outflows. What is a strength of the accrual accounting rate-of-return method? A. Incorporates the time value of money and the project's net cash flows over its entire life, and computes the project's unique rate of return. B. Simple and easy to understand and is a handy method when screening many proposals, particularly when predicted cash flows in later years are highly uncertain. C. Indicates whether or not the project will earn the company's minimum required rate of return.