Unit 6 Accounting abbreviations

Check the definitions on Investopedia and prepare a one minute oral summary.
Investopedia explains Accounting Rate of Return - ARR
ARR is an accounting method used for purposes of comparison. The major drawbacks of ARR are that it uses profit rather than cashflows, and it does not account for the time value of money.
What Does Internal Rate Of Return - IRR Mean?The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. Generally speaking, the higher a project's internal rate of return, the more desirable it is to undertake the project. As such, IRR can be used to rank several prospective projects a firm is considering. Assuming all other factors are equal among the various projects, the project with the highest IRR would probably be considered the best and undertaken first.