An Investment Is Acceptable If Its Average Accounting Return (AAR)

question 21

Multiple Choice

An investment is acceptable if its average accounting return (AAR)

• A)exceeds the target AAR.
• B)is less than the target AAR.
• C)exceeds the firm's return on equity (ROE).
• D)is less than the firm's return on assets (ROA).
• E)is equal to zero.

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Definitions:

Influence Policy

The process of affecting or altering the development, adoption, or implementation of policies through various means of persuasion or advocacy.

Negative Reinforcer

An aversive event or condition that is removed following a desired behavior, thereby increasing the likelihood of that behavior being repeated.

Aversive Event

An unpleasant or harmful event or experience that can induce behavioral changes or psychological stress.

Escape Response

A behavior aimed at moving away from or avoiding a threatening or unpleasant stimulus.