An investment's average net income divided by its average book value defines the average:
A)net present value.
B)internal rate of return.
C)accounting return.
D)profitability index.
E)payback period.

Question

Quizplus · Accepted Answer

The given definition is for the accounting return, which is the ratio between the average net income and average book value of the investment.

An Investment's Average Net Income Divided by Its Average Book