About this document

Accounting Rate of Return Example by lemaisondart1 is a document available to read on EtoBox.

The document provides an example of calculating the Accounting Rate of Return (ARR) for an investment of Rs.130,000 that generates annual cash inflows of Rs.32,000 over 6 years, with a scrap value of Rs.10,500. The ARR is calculated to be approximately 9.3%, derived from the average accounting income after accounting for depreciation. A higher ARR indicates a more acceptable project investment.

Author

lemaisondart1

Language

EN