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Accounting Rate of Return
A financial metric used to assess the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.
Annual Net Income
The total profit of a company after all expenses and taxes have been deducted from revenues over a year.
Payback Period
The amount of time it takes for an investment to generate enough cash flow to recover its initial cost.
Accounting Rate of Return
A method used to determine the profitability of an investment, calculated by dividing the average annual accounting profit by the initial investment cost.
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