The investment decision rule that relates average net income to average investment is the:
A) discounted cash flow rule.
B) average accounting rate of return method.
C) average payback rule.
D) average profitability index.

Question

Quizplus · Accepted Answer

The average accounting rate of return method relates average net income to average investment, providing a simple measure of a project's profitability without considering the time value of money.

The Investment Decision Rule That Relates Average Net Income to Average