ABSTRACT

The accounting rate of return (ARR) is one of the traditional methods of calculating the return on your company's proposed investment. The accounting rate of return looks at the project's annual income, not its cash flow. The ARR is: https://www.w3.org/1998/Math/MathML"> Accounting rate of return Annual cash inflows − Depreciation Initial investment https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780080510781/349fd38e-1125-4f2f-aeb7-f46e94419f14/content/eq27_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/>