The Accounting Rate of Return Is Computed As: A

question 65

Short Answer

The accounting rate of return is computed as: a. Average annual income from the project divided by average annual investment.
B) Average annual income from the project divided by the length of time it takes to recoup the initial investment.
C) Average annual investment divided by the average annual income from the project.
D) Average annual investment divided by the length of time it takes to recoup the initial investment.
E) The initial cash outlay divided by the average annual income from the project.

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Definitions:

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