Ignoring income taxes, the annual net income amount used to calculate the Accounting Rate of Return is Average Annual Profit / Average Investment.
The Accounting Rate of Return (ARR) is the average net income which an asset is expected to generate divided by its average capital cost, and thus it is expressed as an annual percentage.
The ARR's formula is used to make capital budgeting decisions. It is used in situations where companies are deciding on whether or not to invest in an asset based on its expected future net earnings.
Hence, the Accounting Rate of Return is calculated by Average Annual Profit / Average Investment.
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Answer:
What peoples insides look like.
Explanation:
I can list a few more.
but i don't think you want me too
<span>If the MPC is 0.70 and investment increases by $3 billion, the equilibrium GDP will increase by $10 billion.
The GDP is the Gross Domestic Product and the MPC is the marginal propensity to consume. The MPC tracks that a raise in pay will increase consumers spending on goods and services. If there is an increase in spending budget, then the GDP will increase because of more spending power.
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The reason why business fail is because they find it extremely hard to compete with the well known business. for example a man that opens up a buisiness that sells soap and decides to name the soap and company labbi but everyone goes to dove because it's more well known and been out for years and delivers high quality
