Accounting Rate of Return

Views Updated: Dec 15, 2025

Key Facts

Abbreviation
ARR
Pronunciation
/əˈkaʊnɪŋ reɪt əv rɪˈtərn/
Category
Business
Related Field
Accounting

Examples in Context

  1. Non-discounting methods includes payback period and accounting rate of return.
  2. Unlike the payback period, the accounting rate of return does consider a project's profitability; like the payback period, it ignores the time value of money.
  3. The accounting rate of return is the second commonly used non-discounting model.
  4. The accounting rate of return is calculated by dividing the average annual profits from a project into the average investment cost.
  5. Cash flow can be determined by adjusting the accounting rate of return.

Other meanings of ARR

Annual Recurring Revenue Business
Amber ARR image file Bitmap graphics Computing
Alaska Railroad Corporation Regional
Almost Ready To Run Misc
All Robots Report Misc
Annualized Rate Of Return Misc
Absolute Risk Reduction Business
Aurora Inv.tst. Business
Arasor International Ltd Business
Adjusted Rate Ratio Business