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What Does the Accounting Rate of Return Measure

Question 7

Multiple Choice

What does the accounting rate of return measure?


A) The total profits expected from the project, expressed as a percentage of the average annual investment in the project.
B) The total profits expected from the project, expressed as a percentage of the initial outlay.
C) The average annual expected profit expressed as a percentage of the average funds invested in it.
D) The average annual expected profit expressed as a percentage of the initial outlay.

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