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Supporting Information Can Be Described as:

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ARR Net Income Average Investment 100. The vehicles cost 350000. This Pin Shows How To Calculate Ri And Emphasizes That Ri And Roi Are Two Different Formulas And Explains How They Re Different Investing Calculator Explained Ad Get Complete Accounting Products From QuickBooks. . The formula for the accounting rate of return is as follows. ARR Average net profit Initial investment. Average annual profit from. Heres an example of how to use the Accounting Rate of Return formula in the real world. A capital budgeting technique known as accounting rate of returnARR is used to calculate the possible profitability of long-time period investments over time. A Company wants to invest in new set of vehicles for the business. Accounting Rate of Return ARR is the average net income an asset is expected to generate divided by its average capital cost and expressed as an annual percentage. The accounting rate of return
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