Average Annual After-Tax Profits Per Year Divided by the Average

question 57

Multiple Choice

Average annual after-tax profits per year divided by the average book value of the investment equals

• A)payback period technique.
• B)average investment outlay.
• C)average investment capability.
• D)accounting return on investment.

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Definitions:

Quarterly Payment

A payment or installment made once every three months.

Future Value

The value of an investment at a specific date in the future, accounting for factors like interest rates and time.

Effective Rate of Interest

The actual interest rate earned or paid on an investment or loan, considering the effects of compounding.

Rent-to-own Transaction

A leasing agreement that includes a clause allowing the lessee to purchase the leased item at the end of the lease term.