Another name for return on investment is the:
A)net present value
B)accounting rate of return
C)residual income
D)internal rate of return

Question

Quizplus · Accepted Answer

Return on investment (ROI) and accounting rate of return (ARR) are two different terms used interchangeably. ARR expresses the net income or profit an investment is expected to generate in terms of percentage. It is calculated by dividing the expected average annual income generated by the investment by the initial investment cost. ARR is used to evaluate projects, machinery or assets that are expected to provide a stable stream of cash flows over several years.

Another Name for Return on Investment Is The