A measure of the return on an investment over a given period, equal to average projected earnings minus taxes, divided by average book value over the duration of the investment. This measure can also be calculated using average projected earnings without excluding taxes, or average projected earnings less taxes and depreciation. This ratio measures how well investment assets are being used to generate income.
Related information about average accounting return:
- Average accounting return - Wikipedia, the free encyclopedia
The average accounting return (AAR) is the average project earnings after taxes and depreciation, divided by the average book value of the investment during ...
- Average Accounting Return - Investopedia
Average accounting return, also called accounting rate of return or ARR, is an accounting method used for the purposes of comparison with other capital ...
- What is average accounting return? definition and meaning
Definition of average accounting return: A measure of the return on an investment over a given period, equal to average projected earnings minus taxes, divided ...
- Calculate Average Accounting Return - Dr. T 's Accounting Problems ...
Mar 20, 2008 ... A toilet manufacturer is considering building a new production plant in a new town. It will require an initial capital investment of $12 million and ...
- The Pros & Cons of the Average Accounting Return Method | Chron ...
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 ...
- Average Accounting Return financial definition of Average ...
The average project earnings after taxes and depreciation divided by the average book value of the investment during its life.
- What is an Average Accounting Return?
An average accounting return is a calculation demonstrating the rate of return on an investment in a specific period of time...
- average accounting return - Invest Definition
average accounting return definition: The average return that is calculated on an investment. It is calculated by taking the average projected earnings after taxes ...