Which of the following methods of capital budgeting divides the average annual accrual accounting income of a project by a measure of the investment in it?
A) net present value
B) internal rate of return
C) payback method
D) accrual accounting rate of return

Question

Quizplus · Accepted Answer

The method described in the question is the accrual accounting rate of return, which is calculated by dividing the average annual accrual accounting income by the initial investment.

Which of the Following Methods of Capital Budgeting Divides the Average