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QUESTION

Accounting Rate of Return. If the ARR is 10%, what does this mean? I receive profit every year which is 10% of the initial investment?

Accounting Rate of Return. If the ARR is 10%, what does this mean? I receive profit every year which is 10% of the initial investment?

Assuming Initial Investment is $1000, and the average annual profit is $100. ARR = 10%. Does this mean that I will receive $100 every year?

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