How to calculate accounting rate of return of a project
The accounting rate of return does not remain constant over useful life for many projects. A project may, therefore, look desirable in one period but undesirable in 3 Oct 2019 In this formula, the accounting profit is calculated as the profit related to the project using all accruals and non-cash expenses required under the Calculate for each project: a) The accounting rate of return b) The payback period c) The net present value ii. Discuss the merits of each of these methods iii.