Average Accounting Return Concerning Aar A Describe How The Average Accounting

Average Accounting Return Concerning AAR:

a. Describe how the average accounting return is usually calculated, and describe the information this measure provides about a sequence of cash flows. What is the AAR criterion decision rule?

b. What are the problems associated with using the AAR to evaluate a project’s cash flows? What underlying feature of AAR is most troubling to you from a financial perspective? Does the AAR have any redeeming qualities?

Posted in Uncategorized