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.

Planning is one of the pillars that anchor the successful implementation the future business strategies. Some planning activities are achieved through capital budgeting -- that is, appraisal of viable ...

Investors with limited resources need methods for analyzing and comparing investment opportunities. This may involve comparing very different types of investments, from stocks and bonds to real estate ...

Firm profitability is measured in most cases by an accounting rather than by the theoretically superior economic (or internal) rate of return. This paper explores the relationship between accounting ...

An accounting method used in capital budgeting to estimate average returns from a project over its working life. However, as it uses profit rather than cash flow it does not account for the time value ...

Discover how the Modified Dietz Method measures investment returns, factoring in cash flow timing and excluding skewing ...

Investors are often faced with decisions – especially when comparing two prospective investments. Knowing where to put your money comes down to understanding the opportunity of investments in ...