The average accounting rate of return (AAR): Select one: A. is the best method of financially analysing mutually exclusive projects. B. is similar to the return on assets ratio. C. measures net income as a percentage of the sales generated by a project. D. considers the time value of money. E. is the primary methodology used in analyzing independent projects.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 1E: Average rate of return The following data are accumulated by Watershed Inc. in evaluating two...
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The average accounting rate of return (AAR):

Select one:

A. is the best method of financially analysing mutually exclusive projects.

B. is similar to the return on assets ratio.

C. measures net income as a percentage of the sales generated by a project.

D. considers the time value of money.

E. is the primary methodology used in analyzing independent projects.

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