Which of the following is the formula for calculating the accounting rate of return for a capital asset?
A) Average annual net cash inflow from asset/amount invested in asset
B) Average annual operating income from asset/amount invested in asset
C) (Average annual operating income + depreciation expense) /amount invested in asset
D) (Average annual cash inflows - depreciation expense) /(amount invested in asset + residual value of asset)
Correct Answer:
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