Hi,Dera sir,
The ARR(roce) does not take account of returns over the entire life of the project!
Why is it not true? I solve many mcq,s regarding ARR, in which,data is given from project start to termination and I use to reflect this data in answer.
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ARR
10y ago#1The statement as you have typed it is not correct.
It does look at the entire life of the project. The two main problems with it is that firstly it is only an average (and does not look at the return from year to year) and secondly that it does not consider cash flows, only profits.
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