Which One of the Following Is Calculated by Dividing Average

question 44

Multiple Choice

Which one of the following is calculated by dividing average annual net operating income of a proposed project by the average investment associated with the project?

• A) Profitability index (PI).
• B) Payback period.
• C) Accounting (book) rate of return (ARR).
• D) Internal rate of return (IRR).
• E) Net present value (NPV).

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Definitions:

Psychological Reactance

A motivational reaction to offers, persons, rules, or regulations that threaten or eliminate specific behavioral freedoms.

Attitude Inoculation

A method of making individuals resistant to attempts to change their attitudes by initially exposing them to small arguments against their beliefs.

Self-Presentational Concerns

The efforts individuals make to create specific impressions of themselves in the minds of others.

Planned Behavior

Refers to the Theory of Planned Behavior, which is a psychological theory that links belief systems to behavior, positing that behavioral intention is influenced by attitudes, subjective norms, and perceived control over the behavior.