Which one of the following analytical methods is based on net income?
A)Profitability index
B)Internal rate of return
C)Average accounting return
D)Modified internal rate of return
E)Payback

Question

Quizplus · Accepted Answer

The Average Accounting Return (AAR) is based on net income as it uses accounting information from financial statements, specifically net income, to evaluate the profitability of an investment.

Which One of the Following Analytical Methods Is Based on Net