How is an investment projects accounting rate of return defined Why do the accounting rate of return and internal rate of return on a capital project generally differ ...

There are two ways to define an investment projects accou ...

How is an investment projects accounting rate of return defined? Why do the accounting rate of return

Question:

How is an investment project’s accounting rate of return defined? Why do the accounting rate of return and on a capital project generally differ?

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...