The accounting rate of return method is a percentage between average profit and average investment. ARR means if 1 £ the investor invest in,how much money the investor could gain from investment5个回答 返回方法的会计速率为平均利润和平均投资之间的比例。 ARR意味着,如果1英镑的投资者在投资,多少...
aWould you like to have a drink tonight ? Would you like to have a drink tonight?[translate] aalodine 1200 alodine 1200年[translate] aThe accounting rate of return method is a percentage between average profit and average investment. 会计回报率方法是百分比在平均赢利和平均投资之间。[translate]...
The accounting rate of return method is a percentage between average profit and average investment. ARR means if £1 the investor invested in,how much the investor could gain from investment. In the project, the company could gain 18P in each £1. This project is acceptable because of its...
aThe accounting rate of return method is a percentage between average profit and average investment. ARR means if 1 £ the investor invested in,how much the investor could gain from invention. 会计回报率方法是百分比在平均赢利和平均投资之间。 ARR手段,如果1 £投资者被投资,多少投资者可能从发明...
ARR = Average Annual profit/Average Investment ARR = Average Annual Profit/Initial Investment Decision Rule Accept the project only if its ARR is equal to or greater than the required accounting rate of return. In case of mutually exclusive projects, accept the one with highest ARR. ...
of time. This is so because an investor can invest the money in hand at present and earn interest or revenue from it. Thus under this method even if the profits are higher in the initial years or in the later years makes no difference. Because average return would put both the ...
The accounting rate of return (ARR) is a formula that shows the percentage rate of return that is expected on an asset or investment. This is when it is compared to the initial average capital cost of the investment. The ARR formula calculates the return or ratio that may be anticipated...
Accounting rate of return=average annual operating income from an asset/average amount invested in an asset In summary, the payback period focuses on the time it takes for the company to recoup its cash investment but ignores all cash flows occurring after the payback period. Because it ignores...
ARR is calculated by taking the average annual profits expected from a project as a percentage of the capital invested. Several approaches but two possible calculations are: The two approaches differ mainly in figures used for investment (i.e., whether or not this is ‘averaged’). ...
Accounting rate of return(ARR) COMPANIES ARE IN BUSINESS TO EARN PROFITS.ONE measure of profitability is the accounting rate of return on an asset. The formula for calculating ARR is shown in exhibit C EXHIBIT C calculating accounting rate of return Accounting rate of return=average annual ...