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ARR

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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April 4, 2018 at 12:49 pm #444975
humai
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Sir in ARR formula, for calculating average profit the formula is( total cash less total depreciation ) divided by project life. But in total cash flow what is it only inflows or outflows ? And also are these operating cashflows?
April 4, 2018 at 7:37 pm #445022
John Moffat
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ARR is a profit measure whereas DCF is a cash based measure.
Operating cash flows are the income and expenses, but ignoring any non-cash items.
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