The average accounting return method of evaluating business investments is based on using the accounting rate of return for a specified number of years to arrive at an average rate of return for the ...

Investors with limited resources need methods for analyzing and comparing investment opportunities. This may involve comparing very different types of investments, from stocks and bonds to real estate ...

Accounting rate of return is a tool used to decide whether it makes financial sense to proceed with a costly equipment purchase, acquisition of another company or another sizable business investment.

Deciding where to invest your capital is one of the most critical decisions a business owner or a financial manager can make. It’s a process of weighing potential returns against the risks of a ...

Firm profitability is measured in most cases by an accounting rather than by the theoretically superior economic (or internal) rate of return. This paper explores the relationship between accounting ...

This paper presents an alternative to the usual iterative method for determining the approximate internal rate of return in capital budgeting. The method developed is based on the standard numerical ...