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Tag: IRR

Two flowers symbolizing projects A and B with different initial investments, annual profits, and Accounting Rate of Return (ARR) percentages.

Accounting Rate of Return (ARR): Understanding the Annual Percentage Rate of Return on Investments

April 7, 2024 FinanceFacts101 Corporate Finance

What is the Accounting Rate of Return (ARR)? The Accounting Rate of Return (ARR) is a valuable metric for businesses aiming to evaluate the profitability and potential return on their investments. ARR is a ratio that represents the annual rate of return from an asset or investment, calculated as the

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