The Average Accounting Return Is Defined as The

question 74

Multiple Choice

The average accounting return is defined as the:

• A) Present value of a project's cash flows divided by the average book value of the project's assets.
• B) Present value of a project's cash flows divided by the initial investment in the project.
• C) Net income derived from a project divided by the initial investment in the project.
• D) Average net income derived from a project divided by the initial investment in the project.
• E) Average net income derived from a project divided by the average book value of the project's fixed assets.

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Definitions:

Median Price

The middle price in a set of prices of goods or assets, where half the prices are higher and half are lower.

Frequency Distribution

A statistical tool that shows how often each different value in a set of data occurs.

Linear Regression Equation

The mathematical expression that represents the linear relationship between a dependent variable and one or more independent variables in linear regression.

Fahrenheit Degrees

A temperature scale where the boiling point of water is 212 degrees and the freezing point is 32 degrees.