What is an average accounting rate of return (AAR)

What is an average accounting rate of return (AAR)

What is an average accounting rate of return (AAR)? What are the weaknesses of the AAR rule? Give an example?

 

 

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Average accounting rates of return (AAR) is of the most common methods of accounting which is used when comparing the calculations in capital budgeting, for instance, the net present value. This method is used to give an estimate of the worth of given projects over the time that they are going to be useful……………………………………….

APA

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