Question 1
What does Average Rate of Return mainly measure in a capital investment appraisal?
Question 2
Which formula is used to calculate Average Rate of Return?
Question 3
A business invests $10{,}000$ in a machine. The average annual profit from the machine is $1{,}500$. What is the Average Rate of Return?
Question 4
Why might a business use Average Rate of Return when comparing investment projects?
Question 5
Which of the following is a limitation of Average Rate of Return?
