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English definition of “accounting rate of return”

accounting rate of return

noun [C]
 
 
( plural accounting rates of return) ( abbreviation ARR) ACCOUNTING
the amount of money you invest in a project divided by the amount of profit you expect to get from it. Accounting rates of return are used when choosing the best projects to invest in: In evaluating corporate performance an attempt will be made to link accounting rates of return to an internal rate of return.
(Definition of accounting rate of return from the Cambridge Business English Dictionary © Cambridge University Press)
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