Managers May Use the Accounting Rate of Return to Evaluate

Managers may use the accounting rate of return to evaluate potential investment projects because

A) debt contracts require that a firm maintain certain ratios that are affected by income and long-term asset levels.
B) it serves as a screening measure to insure that new investments do not affect key financial ratios.
C) bonuses to managers may be based on accounting income and/or return on assets.
D) it can be tied to the manager's personal income.
E) all of these.