Customer Service Chat
Get quote & make Payment
Accounting rate of return method, finance, Other Engineering
Accounting rate of return method
ARR method is also known as ‘Return on Investment Method’. Here accounting information as shown in the financial statement is the basis for measuring the profitability of an investment (I.M. Pandey, 2005).
ARR = ________________________
Accept Reject Rule:
Accept if the projects ARR > Minimum Required Rate
Reject if the projects ARR < Minimum Required Rate (I.M. Pandey, 2005).
1. Simple to understand and use
2. Readily calculated by referring to financial statements
3. Considered entire income in calculating the profitability
1. It uses accounting profits and not the cash flows in evaluating a project.
2. Time value of money is ignored as average income is taken (I.M. Pandey, 2005).
Posted Date: 2/6/2012 10:37:03 PM | Location : United States
Ask an Expert
Accounting rate of return method, finance, Assignment Help, Ask Question on Accounting rate of return method, finance, Get Answer, Expert's Help, Accounting rate of return method, finance Discussions
Write discussion on Accounting rate of return method, finance
Your posts are moderated
Write your message here..
Electronic devices, give a criticalanalysis of a zener diodedata with suita...
give a criticalanalysis of a zener diodedata with suitable chracteristicsand applications
Common faults - fire safety management, Common faults - Fire safety managem...
Common faults - Fire safety management: Common faults found are: Combustible items left in protected routes Locked exits Fire doors wedged open Exits obstru
#title., problem on dissociation constant
problem on dissociation constant
Aero Performance Problem, Given data for an F-4 (W=40000 lb, S=530 ft^2, Ta...
Given data for an F-4 (W=40000 lb, S=530 ft^2, Ta@sea level=35800 lb, Mach=1.5, h=20000 ft (std day), Cd0=.0224, k=.1516) find aircraft''s specific excess power in straight-and-lev
Clos network works by using permuation, how 3 stage clos networks with an e...
how 3 stage clos networks with an examples
Ic Packages, Ic Packages: Like transistors and other types of solid sta...
Ic Packages: Like transistors and other types of solid state components, IC's are mounted in packages, which protect them from moisture, dust and other types of contaminations.
Michelson and morley experiment, WHY IT IS NOT POSSIBLE
WHY IT IS NOT POSSIBLE
Continuous casting, Continuous Casting : In essential, the process consist...
Continuous Casting : In essential, the process consists of pouring molten metal into a short vertical metal die or mould (at a controlled rate), which is open at both ends, coolin
CHEMICAL ENGINEERING REACTIONS ASSIGNMENT, HI,I GOT ASSIGNMENTS TO TURN IN ...
HI,I GOT ASSIGNMENTS TO TURN IN WITHIN 24 HOURS.PLEASE IS THERE ANYWAY YOU COULD HELP OUT?
Civil sit problems & its solution, two frames are not joint properly so cre...
two frames are not joint properly so create gap between two frames so material lick from this gap
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.