The average net income of a project divided by the project's average book value is referred to as the project's:
A)required return.
B)market rate of return.
C)internal rate of return.
D)average accounting return.
E)discounted rate of return.

Question

Quizplus · Accepted Answer

The average accounting return (AAR) is calculated by dividing the average net income of a project by the project's average book value.

The Average Net Income of a Project Divided by the Project's