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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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