Which of the following is a capital budgeting method that is used to screen potential investments?

Question

Quizplus · Accepted Answer

The accounting rate of return is a capital budgeting method that calculates an average rate of return over a project's useful life to screen potential investments. Return on assets, acid test ratio, and debt-to-equity ratio are all financial ratios used for different purposes, and are not directly related to capital budgeting screening.

Which of the Following Is a Capital Budgeting Method That