Multiple Choice
The average accounting return (AAR) rule can be best stated as:
A) An investment is acceptable if its AAR is less than a target AAR.
B) An investment is acceptable if its AAR exceeds a target AAR.
C) An investment is acceptable if its AAR exceeds the firm's return on equity (ROE) .
D) An investment is acceptable if its AAR is less than the firm's return on assets (ROA) .
Correct Answer:
Verified
Correct Answer:
Verified
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