At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Get the answers you need quickly and accurately from a dedicated community of experts on our Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.
Sagot :
Ignoring income taxes, the annual net income amount used to calculate the Accounting Rate of Return is Average Annual Profit / Average Investment.
The Accounting Rate of Return (ARR) is the average net income which an asset is expected to generate divided by its average capital cost, and thus it is expressed as an annual percentage.
The ARR's formula is used to make capital budgeting decisions. It is used in situations where companies are deciding on whether or not to invest in an asset based on its expected future net earnings.
Hence, the Accounting Rate of Return is calculated by Average Annual Profit / Average Investment.
To learn more about Accounting Rate of Return (ARR) here:
https://brainly.com/question/12988548
#SPJ4
Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.
