Accounting Rate of Return 0.0 / 5 ? Business StudiesFinancial PlanningA2/A-levelAQA Created by: mad0104Created on: 28-05-15 18:36 What is the formula for ARR? Total Net Profit/ No. of Years / Initial Cost X 100 1 of 6 What does ARR look at? The total accounting return for a project to see if it meets the target return 2 of 6 Name one advantage of ARR It provides a percentage return which can be compared with a target return 3 of 6 Name another advantage of ARR It looks at the whole profitability of the project 4 of 6 Name one disadvantage of ARR It doesn't take into account cash flows- only profits 5 of 6 Name another disadvantage of ARR Takes no account of the time value of money 6 of 6
Comments
No comments have yet been made