Learn: Average Rate of Return (ARR): Calculation and Interpretation
Edexcel Level 3 Advanced GCE in Business (9BS0)
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What does Average Rate of Return (ARR) measure?
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The formula for ARR is {{blank0}} divided by {{blank1}} multiplied by 100.
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Which of the following are limitations of ARR? (Select all that apply)
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Calculate the ARR for an investment with an initial cost of £20,000 and an average annual profit of £5,000.
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