3.8 Glossary of key terms & Poster
Unit 3.8 Glossary of key terms - Investment appraisal Note: Key terms in red text are for HL only Key term Definition Accounting 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 expenditure A business organization’s spending on the purchase...