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why in the ARR formula initial investment + scrap+ working capital is divided by 2 and not 3 when they are 3 things?
I have no idea what you mean. The initial investment is never divided by anything!!!
The average investment is the investment at the start plus the investment at the end, divided by 2 to get the average.
I do suggest that you watch my free lectures – they are a complete course for Paper F9 and cover everything needed to be able to pass Paper F9 well.
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