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Management · Q125

Management Accounting

Graduate and Post Graduate · Management · question 125

Q125

Sum of returned working capital and net initial investment is divided by 2 to calculate

A.
increase in operating income
B.
average investment over five years
Answer
C.
average capital invested
D.
average rate of return

Answer: Option B

Solution

Answer: Option B
Solution:
Sum of returned working capital and net initial investment is divided by 2 to calculate average investment over five years.