Where
Equals
__ R
Average rate of return
Rt
Return at time t
T
Number of time points
Where
Equals
u
Average rate of return
Ri
i-th return
n
Number of...
Average rate of return=Average profit /Initial investment*100% or ARR=Average profit /Average investment*100% or ARR=Total profit /Initial Investment*100%
The accounting rate of return (ARR) method may be known as the return on capital employed (ROCE) or return on investment (ROI).The ARR is ratio of the accounting profit to the investment in the...
I don“t know, I have the same question, but I found these information, I hope it's good: http://www.moneoman.gov.om/book/sdi/English/2/2-7/2-7-5.pdf If someone have the solution I'll apreciate your...