Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA FM

ARR

Rraghib8y ago
can you explain how ARR does not take account of timing of cashflows and how NPV does take account?
John MoffatJohn MoffatTutor8y ago#1
The ARR is a measure that uses accounting profits, which are not the same as cash flows. NPV uses cash flows, not profits.
Sign in to reply to this topic.