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Hello sir, is there any difference between ROCE and ARR kaplan has stated it as same however, i come to know that ARR does take account of project life but ROCE does not
I m really confused …..The ROCE is a measure of the profitability of a business and is normally calculated at the end of the year using the profit for the year as a % of the capital employed at the end of the year.
The ARR is one method of appraising new investments and is calculated as the average profit over the life of the investment as a % of the average investment.Both are explained in full in my free lectures. The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
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