A project's average net income divided by its average book value is referred to as the project's average: A. internal rate of return. B. net present value. C. accounting return. D. payback period.

C. accounting return.

Explanation:

The accounting return is a percentage measure that takes the net income or profit, and divides it by the average value of the initial investment, or in other words, the average book value of the project.

The formula is:

Accounting return = Average net income / average book value.

This is an accounting measure, not a financial measure, because it does not take into account the central concept in financie: the time value of money.

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