The accounting rate of return is also known as the

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The accounting rate of return (ARR) is also known as the simple rate of return. This metric measures the average annual profit earned by an investment as a percentage of the initial investment. It is a simple way of assessing the profitability of an investment and is often used in conjunction with other investment appraisal methods. Internal rate of return (B) is a different metric that calculates the rate of return that a project would generate based on its cash flows. Present value (C) is a concept used to determine the current value of future cash flows. Therefore, the correct answer is A) Simple rate of return.

The Accounting Rate of Return Is Also Known as the