Glossary: Investment appraisal

IB Business Management: Glossary: Investment appraisal

www.thinkib.net/businessmanagementNote: Key terms in red text are HL OnlyAccounting rate of return (ARR)Also referred to as the average rate of return, this method of investment appraisal calculates the average annual profit of an investment project expressed as a percentage of the amount of invested.Capital expenditureA business organization’s spending on the purchase or acquisition of fixed assets, e.g. spending...


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