Asked by Madison Chrisman on Jun 26, 2024
Verified
Without using formulas, provide a definition of average accounting return (AAR).
Return
The gain or loss generated on an investment over a particular period, expressed as a percentage of the investment’s initial cost.
- Learn and employ several capital budgeting tactics such as Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Payback Period.
Verified Answer
DK
Damian KohutJun 28, 2024
Final Answer :
A project analysis tool that measures the acceptability of a project by determining the amount of profit that can be expected based on an investment made.
Learning Objectives
- Learn and employ several capital budgeting tactics such as Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Payback Period.
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