Which One of the Following Methods of Analysis Is Most

question 63

Multiple Choice

Which one of the following methods of analysis is most similar to computing the return on assets (ROA) ?

• A)Internal rate of return
• B)Profitability index
• C)Average accounting return
• D)Net present value
• E)Payback

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Definitions:

Compounded Quarterly

The process of calculating and adding interest to a principal amount every quarter or three months, causing the principal to grow at an increasing rate.

RRSP

In Canada, the Registered Retirement Savings Plan serves as an investment and savings scheme aimed at providing for the retirement needs of employees and self-employed people.

Interest Earned

The amount of money generated as income on an investment, savings, or lending over a specified period.

Compounded Annually

Interest calculated on the initial principal and also on the accumulated interest from previous periods within a year.