Accounting Rate of Return (ARR) Explained 📊

In this lesson, we go through an example of the Accounting Rate of Return (ARR). We explain what it is, why it is calculated, and the formula for the Accounting Rate of Return (ARR) as well as a thorough example. We also go through the advantages and disadvantages of the Accounting Rate of Return (ARR).

Timestamps:
Accounting Rate of Return Definition: 00:00
Interpret / Analyze the Accounting Rate of Return: 00:50
Accounting Rate of Return Formula: 01:52
Accounting Rate of Return Example: 03:08

Accounting Rate of Return (ARR) | Example 2: https://youtu.be/5THivbHOGvo

Salvage Value explained: https://youtu.be/EUfdXmESnL8

Net Present Value (NPV) Calculation Example Using Table: https://youtu.be/oytg9ow2hM8

IRR (Internal Rate of Return) Explained with Example: https://youtu.be/jYpJqayaeFc

Payback Period explained with example: https://youtu.be/lfyjasinZdY

Check out other straight-forward examples on our channel.

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