Multiple Choice
Which of the following is the formula for the accounting rate of return?
A) Net initial investment ÷ Annual cash flow
B) (Project revenue - Project operating expenses) ÷ (Initial investment - salvage of old asset)
C) Present value of future cash flows ÷ Net initial investment
D) Net initial investment ÷ Present value of future cash flows
Correct Answer:
Verified
Correct Answer:
Verified
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