Accountancy, asked by jpsavita718, 1 year ago

How to calculate accounting rate of return?

Answers

Answered by enormous010
0
Hi friend,


Accounting rate of return is the avg. net income of an asset is expected to generate dividend by its avg. capital cost, expressed as an annual percentage.

Formula :-

ARR = Avg. Net profit / Avg. Investment...i hope it helps you

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