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:

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The ease with which a reader can understand or interpret the meaning of text or data.

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A writing flaw where the action (verb) is hidden in a noun form, making sentences longer and less clear.