Accounting rate of return is a tool used to decide whether it makes financial sense to proceed with a costly equipment purchase, acquisition of another company or another sizable business investment.

Deciding where to invest your capital is one of the most critical decisions a business owner or a financial manager can make. It’s a process of weighing potential returns against the risks of a ...

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 arrive at an average rate of return for the ...

Making good investments in projects and long-term assets is an important part of growing a small business. You can use internal rate of return, or IRR, to help you make such investment decisions. IRR ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

The internal rate of return, or IRR, allows investors to analyze the profitability of investments and companies to analyze the profitability of capital outlays. The easiest way to understand IRR is by ...