After-tax net income divided by the annual average investment in an investment, is the:

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Quizplus · Accepted Answer

The after-tax net income divided by the annual average investment is a calculation of the accounting rate of return, which measures the profitability of an investment based on its accounting profits relative to the amount invested. This measure does not account for the time value of money or other investment factors, so it may not be a comprehensive evaluation of the investment's performance.

After-Tax Net Income Divided by the Annual Average Investment in an Investment