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

Question 21

Multiple Choice

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


A) exceeds the target AAR.
B) is less than the 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.

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