Accounting return on investment: Difference between revisions
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[Average annual accounting profit over the project life] ÷ [Average book value of investment in the project] | [Average annual accounting profit over the project life] ÷ [Average book value of investment in the project] | ||
== See also == | == See also == | ||
Revision as of 12:26, 22 June 2016
A measure of profitability based on accounting profits divided by the book value of invested capital.
This measure may be calculated in a number of different ways, for example:
[Average annual accounting profit over the project life] ÷ [Average book value of investment in the project]
