Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / The average accounting rate of return (AAR): Select one: o a
The average accounting rate of return (AAR): Select one: o a. is the best method of financially analyzing mutually exclusive projects. b. is similar to the return on assets ratio. oc. is the primary methodology used in analyzing independent projects. O d. measures net income as a percentage of the sales generated by a project. e. considers the time value of money.
b) is similar to the return on asset ratio
AAR is nothing but Average of net income / Average investment , thus it is similar to that of retun on asset ratio
AAR ignores time value of money and hence it is not best method to analyze the project
