Chapter 4 Capital Budgeting and Basic Investment Appraisal ...

2.3.1 This is also known as return on capital employed (ROCE) or return on investment (ROI). 2.3.2 Decision rule. If the expected . ARR. for the investment is . greater than. the . target or hurdle rate. then the project should be . accepted. 2.3.3 This ratio can be calculated in a number of ways. There are three alternative versions of ARR can ... ................
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