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ROCE ,ARR AND ROI

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

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March 1, 2022 at 2:54 pm #649561
shaunak22
Participant
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there are two differnt formulas for ROCE =1) (AVG PROFIT/INITIAL INVETSMENT)
2) (AVG PROFIT /AVG INVESTMENT)
DOUBT – WHICH ONE TO USE
DOUBT 2) ARE ROCE ROI ARR SAME?\
March 1, 2022 at 4:25 pm #649573
John Moffat
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- Topics: 57
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Which to use depends on the information available in the question and the requirements.
The examiner usually prefers the first of the two formula you write to be used.
They are all the same principle.
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