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:

Relativistic Thinking

The cognitive ability to understand that knowledge and viewpoints can be relative and dependent on the context.

Autonomous Judgment

The ability to make decisions independently, based on one’s own reasoning and values.

Dualistic Thinking

A cognitive tendency to see situations and issues in black and white, categorizing concepts as either/or without acknowledging complexities.

Relativistic

Pertaining to the concept that points of view have no absolute truth or validity, having only relative, subjective value according to differences in perception and consideration.