Which One of the Following Is Calculated by Dividing Average

Multiple Choice

Which one of the following is calculated by dividing average annual net operating income of a proposed project by the average investment associated with the project?

A) Profitability index (PI) .
B) Payback period.
C) Accounting (book) rate of return (ARR) .
D) Internal rate of return (IRR) .
E) Net present value (NPV) .