A Project's Average Net Income Divided by Its Average Book

question 32

Multiple Choice

A project's average net income divided by its average book value is referred to as the project's average: 

• A) net present value. 
• B) internal rate of return. 
• C) accounting return. 
• D) profitability index. 
• E) payback period. 

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Definitions:

Income Statement

A financial document showing a company's revenue, expenses, and profits over a specific period.

Balance Sheet

A report detailing a corporation's assets, liabilities, and owners' equity at a particular moment.

Comparative Data

Information presented for two or more periods to facilitate quantitative analysis, allowing for trend analysis and benchmarking.

Operating Expenses

Costs incurred during the normal operations of a business, excluding costs related to the production of goods or services.