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Q. Merits of accept-reject criteria?
Merits of ARR:-
(i) Simple: - ARR method is very simple to understand and use.
(ii) Complete life time of the project is considered: - ARR method utilizes the entire profits earned during the life time of the project in calculating the project's profitability.
Annuity
A cash-flow yield is the discount rate that makes the price of a mortgage-backed or asset-backed security equal to the present value of its ca
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er diagram
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#how to calculate initial investment cash flows ..
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