Accounting Rate of Return (ARR) Calculator
Parameter | Description | Example Value |
---|---|---|
Average Annual Accounting Profit | The average annual accounting profit from the investment. | $20,000 |
Initial Investment | The initial cost of the investment. | $100,000 |
Accounting Rate of Return (ARR) | The rate of return calculated by dividing the average annual accounting profit by the initial investment (Average Annual Accounting Profit / Initial Investment * 100). | 20% |