Accounting rate of return is a tool used to decide whether it makes financial sense to proceed with a costly equipment purchase, acquisition of another company or another sizable business investment.

Decisions regarding investing in long-term capital assets or projects are important to small businesses. Capital assets are those that generate income for a business. The accounting rate of return is ...

An accounting method used in capital budgeting to estimate average returns from a project over its working life. However, as it uses profit rather than cash flow it does not account for the time value ...

Investors with limited resources need methods for analyzing and comparing investment opportunities. This may involve comparing very different types of investments, from stocks and bonds to real estate ...

This article reports the results of a national survey on the use of several capital budgeting decision models by county governments. Among the models examined, the benefit-cost ratio (BCR) and the ...