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ARR

Hhuma8y ago
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?
John MoffatJohn MoffatTutor8y ago#1
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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