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Average Accounting Return
A financial ratio that measures the average net income a company expects to earn from an investment compared to its initial cost.
Book Value
The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total value of assets.
Initial Investment
The amount of money used to start a business venture or project, not including operating costs or maintenance expenses incurred after the venture is operational.
Straight-line Depreciation
A method of depreciating fixed assets evenly across their useful life.
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