An Investment Is Acceptable If Its Average Accounting Return (AAR)

Multiple Choice

An investment is acceptable if its average accounting return (AAR) :

A) Is less than a target AAR.
B) Exceeds a target AAR.
C) Exceeds the firm's return on equity (ROE) .
D) Is less than the firm's return on assets (ROA) .
E) Is equal to zero and only when it is equal to zero.