The accounting rate of return is a capital investment decision model that does not provide for the inclusion of tax effects.

Name: The accounting rate of return is a capital investment decision model that does not provide for the inclusion of tax effects.
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The accounting rate of return (ARR) can include tax effects if the calculation is based on net income after taxes, although it primarily focuses on the project's impact on accounting profits rather than cash flows.

The Accounting Rate of Return Is a Capital Investment Decision