The average accounting return:

a$.$ Reflects the projected net effect of the cash flows from a project on the overall firm.

b$.$ Is comparable to the return on assets and thus provides a similar measure of performance.

c$.$ Reflects the anticipated net impact of a project on the shareholders of the firm.

d$.$ Rule, when applied, guarantees that only projects that increase shareholder wealth will be accepted.

e$.$ Ignores all income produced by a project after an arbitrarily assigned cutoff point.