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How do you calculate the accounting rate of return please can you give specific examples?

Rtieritoa ∙

Lvl 1

∙ 16y ago

Updated: 11/10/2022

ARR isalso known as average rate of return it measures the overall profitability of an investment it has four steps to calculate 1-caculate all cash in flow 2-subtract initial investment 3-divide the figure by life span of the investment 4-calculate what percentage is this of the initial investment by using average annual profit/initial investment x100

Wiki User

∙ 16y ago

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