Accounting rate of return gives managers an estimate of how soon they will recover their initial investment.

Name: Accounting rate of return gives managers an estimate of how soon they will recover their initial investment.
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Accounting rate of return (ARR) is a calculation of the annual profit or return generated by an investment, divided by the initial cost of the investment. It does not provide any information about how soon the initial investment will be recovered.

Accounting Rate of Return Gives Managers an Estimate of How