A measure of the average annual income as a percent of the average investment
A)Capital rationing
B)Annuity
C)Capital investment analysis
D)Internal rate of return method
E)Payback period
F)Accounting rate of return

Average Annual Income

The average amount of money earned per year over a specified period, often used to assess financial stability.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated by dividing the average annual accounting profit by the initial investment cost.