"How many dollars in average profits are generated per dollar of average investment?" is answered using
A)accounting return on investment.
B)net present value.
C)internal rate of return.
D)investment outlay valuation.

Question

Quizplus · Accepted Answer

The question is asking for a profitability ratio, which is typically calculated using the accounting return on investment (ROI) formula. ROI measures the amount of profit generated per dollar of investment, making it the appropriate choice for this question. Net present value (B) and internal rate of return (C) are methods for evaluating investment projects as a whole, not for calculating profitability ratios. Investment outlay valuation (D) is not a commonly used term and does not appear to be relevant to the question.

"How Many Dollars in Average Profits Are Generated Per Dollar