The Accounting Rate of Return Is Calculated As

question 67

Multiple Choice

The accounting rate of return is calculated as:

• A) The annual average investment divided by the after-tax income.
• B) The after-tax income divided by the total investment.
• C) The cash flows divided by the annual average investment.
• D) The cash flows divided by the total investment.
• E) The after-tax income divided by the annual average investment.

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Definitions:

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