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hello Sir,
in answer to part b its written
‘CJ Co should clarify why either method can be used to justify a
project when then assess different characteristics and neither should be used solely to judge an investment
opportunity.’
plz explainThats not actually what the examiner wrote in his answer (which is saying the same thing, but he says it in a better way in my opinion).
All it is saying is that there are several ways of appraising an investment (DCF, ARR etc..).
There is no ‘best’ way. It is a question of deciding what is important to the company and looking at a range of measures before making the decision.
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