Asked by raman rainkh on Jul 04, 2024
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The method of analyzing capital investment proposals in which the estimated average annual income is divided by the average investment is the average rate of return method.
Estimated Average
A calculation that aims to determine the central or typical value of a data set or projection.
Average Rate
A calculation representing the central or typical value in a set of rates, or a fixed rate determined as an average from several rates.
Capital Investment
Funds spent by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.
- Acquire knowledge about the basics and computation methods for the average rate of return on investments.
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Learning Objectives
- Acquire knowledge about the basics and computation methods for the average rate of return on investments.
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