Accountancy, asked by sumansunil2944, 1 year ago

What does average rate of return mean?

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Answered by PiyushSinghRajput1

Accounting rate of return, also known as the Average rate of return, or ARR is a financial ratio used in capital budgeting. The ratio does not take into account the concept of time value of money. ARR calculates the return, generated from net income of the proposed capital investment. The ARR is a percentage return.

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