Which one of the following methods of analysis is most similar to computing the return on assets (ROA)?
A. Profitability index.
B. Average accounting return.
C. Net present value.
D. Payback.

The method that is most similar is the average accounting return. This refers to the average project earnings after taxes and depreciation which is then divided by the average book value of the investment during its life. Which is very similar to computing the return on assets (ROA) which is dividing net income by average total assets in order to calculate the total return generated.

Which one of the following methods of analysis is most similar to computing the return on assets (ROA)? A. Profitability index. B. Average accounting return. C. Net present value. D. Payback.

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Which one of the following methods of analysis is most similar to computing the return on assets (ROA)?
A. Profitability index.
B. Average accounting return.
C. Net present value.
D. Payback.