tag:blogger.com,1999:blog-2642459372841686970.post8335985784484175985..comments2019-03-19T02:00:57.460-07:00Comments on Dr. T 's Accounting Problems and Tax: Calculate Average Accounting ReturnBigThttp://www.blogger.com/profile/10002264755313331280noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2642459372841686970.post-1208828048070570602018-12-07T01:25:17.616-08:002018-12-07T01:25:17.616-08:00Great Article
IEEE Projects for Engineering Stu... Great Article<br /> <br /> <a href="http://projectcentersinchennai.co.in" title="IEEE Projects for Engineering Students" rel="nofollow">IEEE Projects for Engineering Students</a><br /> <a href="http://projectcentersinchennai.co.in/Domains/Final-Year-Project-Domains-for-CSE" title="IEEE Project Ideas for CSE" rel="nofollow">IEEE Project Ideas for CSE</a><br /> <br /> <br /> <br /> <a href="http://javascripttrainingcourses.com" title="JavaScript Training in Chennai" rel="nofollow">JavaScript Training in Chennai</a><br /> <a href="http://wisentechnologies.com/it-courses/html-css-javascript-jquery-training.aspx" title="JavaScript Training in Chennai" rel="nofollow">JavaScript Training in Chennai</a>for IT thehttps://www.blogger.com/profile/01234222908168002434noreply@blogger.comtag:blogger.com,1999:blog-2642459372841686970.post-45247078542358981202013-05-05T21:32:28.696-07:002013-05-05T21:32:28.696-07:00OK, I guess this isn't monitored any more, but...OK, I guess this isn't monitored any more, but 'll try....<br /><br />October 7, 2012's question is excellent.<br /><br />There are two ways to look at this that challenge Dr T's assumption that the average asset value is $6million:<br /><br />1. Given that you've taken income numbers from period ends and because write downs occur (normally) at period end, the books would have a series of asset values: $9 million, $6 million, $3 million and then $0 The average of this series of numbers is (9+6+3+0)/4 = $4.5 million.<br /><br />2. Another way of thinking about it: You divide the numerator in the AAR equation by 4 (as there are four years) but only dividing the denominator by 2. That doesn't work mathematically. If that's the case, then you should just add all the revenue and divide by two as well.<br /><br />If this was another type of depreciation, would you not use the averaging as I have done above - by taking numbers at discrete periods and averaging by the number of periods?<br /><br />Can you please explain?<br /><br />Thanks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2642459372841686970.post-38955595132941090512012-10-07T09:37:00.950-07:002012-10-07T09:37:00.950-07:00Thank you, just one question why do you divide 12m...Thank you, just one question why do you divide 12m$ with 2 ? <br /><br />thank you!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2642459372841686970.post-89274283351232001772012-05-12T22:39:34.671-07:002012-05-12T22:39:34.671-07:00Thank you!Thank you!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2642459372841686970.post-11130996344789523342008-10-10T18:39:00.000-07:002008-10-10T18:39:00.000-07:00NOTE: Average Accounting Return is a horrible way ...NOTE: Average Accounting Return is a horrible way to analyze a project. It doesn't take into consideration time-value of money. Unlike other measures, it gives you a relative number, but not as definitive as NPV. You should not use this calculation in the real-worldHapholsnoreply@blogger.comtag:blogger.com,1999:blog-2642459372841686970.post-8184043174857381842008-06-05T14:04:00.000-07:002008-06-05T14:04:00.000-07:00Thanks to you and my trusty blackberry.. I will pa...Thanks to you and my trusty blackberry.. I will pass a fina thanks for the aar calc...ps go cubs!!!Anonymousnoreply@blogger.com