The Average Accounting Rate of Return (AAR)

question 100

Multiple Choice

The average accounting rate of return (AAR) : 

• A) considers the time value of money. 
• B) measures net income as a percentage of the sales generated by a project. 
• C) is the best method of financially analyzing mutually exclusive projects. 
• D) is the primary methodology used in analyzing independent projects. 
• E) is similar to the return on assets ratio. 

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