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Thus the first advantage of this investment measure is constituted by its ease of calculation and hence providing a quick estimate of a project's worth over its useful life. It simultaneously enables the comparison of different projects.
The major drawbacks of ARR are that it uses profit rather than cash flows, and it does not account for the time value of money...
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Thus the first advantage of this investment measure is constituted by its ease of calculation and hence providing a quick estimate of a project's worth over its useful life. It simultaneously enables the comparison of different projects.
The major drawbacks of ARR are that it uses profit rather than cash flows, and it does not account for the time value of money...
Essay fragment
General points of the essay
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