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Topic: Business
Number of pages / Number of words: 7 / 1773
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Its sole concern is cash flow.

It is probably best to regard payback as one of the first methods people use to assess competing projects. It could be used as an initial screening tool, but it is inappropriate as a basis for sophisticated investment decisions.

Accounting rate of return (ARR)

The accounting rate of return expresses the profits arising from a project as a percentage of the initial capital coat...


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Its sole concern is cash flow.

It is probably best to regard payback as one of the first methods people use to assess competing projects. It could be used as an initial screening tool, but it is inappropriate as a basis for sophisticated investment decisions.

Accounting rate of return (ARR)

The accounting rate of return expresses the profits arising from a project as a percentage of the initial capital coat...


Essay fragment

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