Question 1
What does Average Rate of Return measure in investment appraisal?
Question 2
Which formula is most commonly used to calculate Average Rate of Return?
Question 3
A project costs $50,000$ and is expected to generate average annual profit of $5,000$. What is the Average Rate of Return?
Question 4
Why might a business use Average Rate of Return when comparing two investments?
Question 5
Which statement best describes one limitation of Average Rate of Return?
