The simple rate of return, rate of return on assets and the unadjusted rate of return are synonymous with:

A) the accounting rate of return.
B) the payback method.
C) the internal rate of return.
D) discounted cash flow.

Accounting Rate of Return

A financial metric that measures the return on investment expected from a project or asset, calculated as the average annual profit divided by the initial investment cost.

Simple Rate of Return

A calculation that estimates the profitability of an investment, without factoring in the time value of money or cash flows over time.

Unadjusted Rate

A rate or measure that has not been modified to account for factors or variables that could affect its interpretation or accuracy.