ocr: Accounting Rate ofReturn (ARR) 25 20 15 ARR % 10 D Project A Project B Project C The chart shows that according to the ARR method all three projects are equally worthwhile. AKK is calculated using average annual profit and average capital employed. Neither of these two figures is affected by the timing of the cash inflows. For this reason it: is important that ARR is never used as an exclusive method for appraising capital investment projects.
(.png)
