Accounting Rate of Return_L4

Описание: 💰 Accounting Rate of Return (ARR) | Capital Budgeting & Investment Appraisal Lesson 📈

Learn how to evaluate investment projects using the Accounting Rate of Return (ARR) method! This lesson explains the concept, formula, advantages, and limitations of ARR, helping learners understand how businesses assess profitability before committing to long-term investments.

💡 Key Topics Covered:

Definition and meaning of Accounting Rate of Return (ARR)

Purpose of ARR in capital budgeting

Formula for ARR:

𝐴
𝑅
𝑅
=
Average Annual Profit
Initial Investment
×
100
ARR=
Initial Investment
Average Annual Profit
​

×100

Step-by-step calculation examples

Difference between ARR and other appraisal methods (NPV, IRR, Payback Period)

Advantages and limitations of ARR

Decision criteria for accepting or rejecting projects

Real-life applications in business investment decisions

🎯 Who Should Watch:

Accounting, finance, and business students

Teachers preparing lessons on investment appraisal methods

Entrepreneurs and managers learning financial decision-making

Anyone interested in evaluating business projects using profitability measures

📘 Learn With Manifested Publishers:
Comprehensive lessons, worked examples, and exercises designed to help learners master capital budgeting and financial management concepts with clarity.

💻 Visit: www.manifestedpublishers.com

📞 Call/WhatsApp: +254 724 173 845

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