Is the accounting rate of return (ARR) the same thing as the return on investment (ROI)?

Q: Distinguish the nominal rate of return from the real rate of return.

A:

Q: Which one of the following statement is true about profit maximization? a It foc US or Ountina

A: 1. Profit maximization is the concept that focuses on maximising the profits. This concept ignores…

Q: Which is the accounting rate of return using the average investment?

A: Summary of the relevant information as provided in the question : cost of investment =    £…

Q: How does the lower of cost or market relate to profit margins?

A: Answer: The lower cost or market implies that, depending on how historical costs and market costs…

Q: What are the Profit margins?

A: Answer: Profit margin represents a product, company or sector profitability. It nothing but the…

Q: Consider the advantages and disadvantages of using the accounting rate of return as an investing…

A: This question explains about  the advantages and disadvantages of using the accounting rate of…

Q: Why are the net present value and the internal rate of return models superior to the payback period…

A: The net present value and internal rate of return techniques are superior to the payback method…

Q: Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP…

A: IFRS is principal based.

Q: e average rate of return on investment,

A: Average rate of return of investment = Average net income * 100/(Initial investment-Salvage value)

Q: Analyze the profitability graph that illustrates the factors/accounts that are needed to calculate…

A: The profitability graph: The profitability graph depicts all the inputs that are needed to compute…

Q: What is Operating Profit Margin and how is it Calculated? What is a high quality of earnings?

A:

Q: what are the incremental earnings (net income) associated with the new machine?

A: Earnings: It is the income for the company after taking into account expenses and depreciation and…

Q: ected rate of return concept differ from that of the rea

A: There are many method of valuation of stock based on expected rate and realized return and dividends…

Q: Explain how did it get the NPV, the Economic Value Added (EVA), and the Market Value Added (MVA)

A: Capital budgeting is a process that is undertaken by an organization or business to evaluate…

Q: What is the significance of finding the internal rate of return?

A: IRR helps to check the viability of the project. If IRR is more than Kc than Project seems to be…

Q: The internal rate of return for Company A is close to

A: IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a…

Q: difference between internal rate of return and net present value?

A: Difference between internal rate of return and net present value?

Q: Discuss how the Accounting Rate of Return as an investment appraisal method is better than the Net…

A: Accounting ROR or ARR and Net Present Value(NPV) are tools that are used to make selection among…

Q: Which different terms are used to refer to rate of return?

A: Rate of return is the return that is expected by the investors from the investment made. It is…

Q: Why is profitability analysis necessary, with a particular emphasis on return on investment? When…

A: Profitability is a phrase that relates to the metric used to quantify earnings. Profitability…

Q: Explain Cumulative Investment Return Patterns?

A: Answer: Introduction: Cumulative return is the total amount of money that an individual has…

Q: How do you turn an income statement int a forecasted return? And how is it helpful?

A: Return means earn additional on invested amount. Return is a positive factor in every investment.…

Q: What do we mean by internal rate of return (IRR)?

A: Internal rate of return : Internal rate of return is one of the techniques used in capital budgeting…

Q: Explain an example how to calculate accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: What is the reason that makes net profit margin increases and decreases?

A: What is the reason that makes net profit margin increases and decreases?

Q: Define the term Profit margins?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: What will be Measures of Investment Performance Using Ratios?

A: It is always essential to evaluate the performance of the investments to decide whether the…

Q: what is the difference between a required rate of return and an expected rate of return?

A: Rate of return (ROR) is a value at which an investor earns additional amount on invested amount…

Q: How is Profit Margin calculated and what does It measure?

A: Note: Since you have asked multiple questions, we will solve the first question. To get the…

Q: What is market Value added? What is economic value added? What is the difference between what each…

A: Market value added is the amount of wealth that the company is able to create for its stakeholders.…

Q: What ROI will equate the PV of Inflows and the PV of outflows? a. Internal rate of return (IRR) b.…

A: Option b is incorrect because cost of capital means the cost that is incurred by the organization on…

Q: What is the relationship between NPV and profitability index (PI)?

A: The concept of net present value is used to decide whether to invest in an investment or not. It is…

Q: Which of the following is most accurate about fundamental and technical analysis? Fundamental…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Define the terms market value added (MVA) and economic value added (EVA).

A: The concept of economic value added was developed by Stern Stewart & co & is also known as…

Q: Forward P/E = Market capitalization/ forecasted income

A: There are two types of P/E ratios 1) Trailing P/E ratio 2) Forward P/E ratio   Trailing P/E ratio…

Q: In what way are profitability and efficiency related? How are profitability and liquidity related

A: The question explains about profitability and efficiency related and profitability and liquidity…

Q: what is return on investment capital and profitability analysis?

A: Both return on investment and profitability analysis are  profitability ratios

Q: What is meant by the terms margin and turnover in ROI calculations?

A: ROI( Return on investment) is a performance measure used to measure the efficiency of an…

Q: What is a “required rate of return”? Why is it called the “cost ofmoney” or the “price of money”?

A: The required rate of return can be calculated by two methods, 1) Gordan's growth model  Gordan's…

Q: What is the Profitability Index?

A: Capital budgeting is the technique of evaluating a project which requires an initial capital…