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After-tax net income divided by the average amount invested in a project, is the: ___________

Asked 6 months ago
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1
a. Net present value rate.
b. Payback rate.
c. Accounting rate of return.
d. Earnings from investment.
e. Profit rate.

1 Answer

2

Answer:

c. Accounting rate of return.

Explanation:

The Accounting rate of return is calculated by dividing the after tax net income by average investment (i.e. Accounting rate of return = After tax net income / Average investment )

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Lavina Yundt
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answered 6 months ago

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