Timothy Moore, Managing Director of Tiles Ltd, has received a report from his Finance Manager recommending four investment projects for his approval. However, the firm has only sufficient funds to invest in one project. The firm's rate of return is 6%. The accounting rate of return for each project is: A - 12%, B - 9%, C - 13%, D - 15%. Short will select:

Question

Quizplus · Accepted Answer

Project D has the highest accounting rate of return at 15%, which is above the firm's rate of return of 6%, making it the most attractive investment option.

Timothy Moore, Managing Director of Tiles Ltd, Has Received a Report