Average accounting rate of return (AARR) - Financial definition
Financial acronyms
The entire acronym collection of this site is now also available offline with this new app for iPhone and iPad.
Concise definition of the term average accounting rate of return
The AARR is the expected average accounting income generated by an investment, divided by the average amount invested over the project's lifespan.
Comprehensive definition of the term average accounting rate of return
The AARR is a method used by companies to evaluate and thus rank projects in terms of expected profitability.