Which term below is best described as "a measure of profitability computed by dividing the average annual operating income by the amount of the investment?"

Question

Quizplus · Accepted Answer

The term described is the accounting rate of return, which is calculated by dividing the average annual operating income by the amount of the investment. The other options - discount rate, internal rate of return, and net present value - are all measures of investment performance, but they are calculated differently and do not involve dividing operating income by the investment amount.

Which Term Below Is Best Described as "A Measure of Profitability