ARR gives a fast estimate of a project's value over its useful life. ARR is derived by determining profits before taxes and interest.

 

ARR is an accounting technique used for purposes of evaluation. The main drawbacks of ARR are that it takes profit rather than cash flows, and it does not report for the time value of money.

 

Posted Date: 7/27/2012 3:42:01 AM | Location : United States

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