There are various methods that are employed in practice that are used to inform future actions regarding the resource in question. Before we begin explaining three which my organization uses most of the times, it is important to mention that these methods are of pure financial and quantitative nature. When making resource information decisions, factors which extend beyond the financial boundaries are also to be kept in mind to ensure a rational decision. These factors are called qualitative factors. Since the question demands only explanation of methods, we will focus on the financial methods:
Accounting rate of return:
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