What goes around...
13 September 2012
The accounting rate of return can be a contentious issue, but this could be the solution.
There appears to be much confusion over the accounting rate of return (ARR), with no universally accepted formula for its calculation. Generally, there is a distinction made between the ARR based on initial investment and average investment, but there is no consistent basis for calculating the figures to be used for either investment in (or return from) a project.
The ARR...