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Average accounting return

A measure of the Return on an investment over a given period, equal to Average projected earnings minus taxes, divided by Average book value over the duration of the investment. This measure can also be calculated using Average projected earnings without excluding taxes, or Average projected earnings less taxes and Depreciation. This Ratio measures how well investment assets are being used to generate income.

Related Terms: 9 Asset, Average, CLU, Depreciation, ECI, Inc., Return, Ratio, Tax
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