Which of the Following Is Considered to Be a Redeeming

Multiple Choice

Which of the following is considered to be a redeeming feature of average accounting return analysis?

A) It incorporates time value of money.
B) Estimation of the appropriate cutoff rate is straightforward and easy.
C) Calculation relies on net income and not cash flows or asset values.
D) Calculation relies on book values and not market values or cash flows.
E) It is relatively easy to calculate.