why is that cash flow techniques like NPV, IRR is considered superior to methods like ARR which considers annual operating profit?
One reason I could think of is that, a profit can be manipulated by managers.
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superiority of cash flow techniques in investment appraisal
9y ago
9y ago#1The other main reason is that NPV and IRR take into account the time value of money. That concept is the foundation of discounting.
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