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    Question

    Which of the following is not correct about ARR

    method?
    A ARR is similar to using ROI (Return on Investment) and ROCE (Return on Capital Employed) Correct Answer Incorrect Answer
    B ARR is based on present value of the PAT (Profit After Tax) Correct Answer Incorrect Answer
    C ARR does not consider time value of money Correct Answer Incorrect Answer
    D The time of the cash flows do not make any difference in ARR Correct Answer Incorrect Answer

    Solution

    The correct answer is B

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