The _____ is calculated by dividing the average annual after-tax profits per year by the average book value of the investment.
A) payback period
B) average investment outlay
C) average investment capability
D) accounting return on investment

Question

Quizplus · Accepted Answer

The accounting return on investment is calculated by dividing the average annual after-tax profits per year by the average book value of the investment. It is a measure of profitability that takes into account the amount of capital invested. The other options, payback period, average investment outlay, and average investment capability, do not take into account profitability or after-tax profits.

The _____ Is Calculated by Dividing the Average Annual After-Tax