Accounting Rate of Return

The accounting rate of return, also called the average rate of return is defined as:

Example 1:

Find out Accounting Rate of Return overall and individual in order to decide which year is best?

(Acceptance Criterion: The higher the accounting rate of return the better the project)

Example 2:

Which one of the following project is best using Non-Discounting Criteria?

Related Courses

Principles of Accounting

Cost Accounting

Principles of Finance

Financial Accounting