Somtochukwu

Accounting Rate of Return is the ratio of average return to average capital such that if the projects ARR (ARRi) is compared with a previous (ARRo) and ARRi is greater than ARRo, the project should be accepted and rejected if ARR, is less than ARRo.

ARRi is the calculated
ARRo is the predetermined

For mutually exclusive projects, we accept, choose the project which has a higher ARR.

Let us connect on social media forever;

• 
• 
• 
• 
• 
• 
•