One method of investment decision making that is appealing to managers is the accounting rate of return (ARR). This method measures the average profit over a period as a percentage of the:
A) net cash flow.
B) average investment.
C) net cash inflow.
D) opportunity cost.

Question

03-06-2023
Business

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One method of investment decision making that is appealing to managers is the accounting rate of return (ARR). This method measures the average profit over a period as a percentage of the:
A) net cash flow.
B) average investment.
C) net cash inflow.
D) opportunity cost.

Respuesta :

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eduardoantonio84 eduardoantonio84 · Answer 1 · 2023-06-03T03:08:30+02:00

The correct answer is B) average investment.

The accounting rate of return (ARR) is a method of investment decision making that calculates the average profit over a period as a percentage of the average investment. It is a profitability measure used by managers to assess the potential return on an investment. By comparing the average profit to the average investment, the ARR helps evaluate the profitability of a project or investment opportunity.

One method of investment decision making that is appealing to managers is the accounting rate of return (ARR). This method measures the average profit over a period as a percentage of the: A) net cash flow. B) average investment. C) net cash inflow. D) opportunity cost.

Respuesta :

Otras preguntas

One method of investment decision making that is appealing to managers is the accounting rate of return (ARR). This method measures the average profit over a period as a percentage of the:
A) net cash flow.
B) average investment.
C) net cash inflow.
D) opportunity cost.