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ARR does rule out time worth of money contrary to other reasonably priced capital monetary investment appraisal techniques for instance NPV and IRR.

The accounting rate of return (ARR) is the quantity of earnings, or return, that a person can foresee based mostly upon a economical financial commitment designed. Accounting charge visit the website of return divides the typical income with the preliminary economical expense in order to have the ratio or return which might be anticipated.

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