Which are considered limitations of the arr concept

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Problem 1: The following statements refer to the accounting rate of return (ARR): 1.The ARR is based on the accrual basis, not cash basis. 2. The ARR does not consider the time value of money. 3. The profitability of the project is considered. From the above statements, which are considered limitations of the ARR concept?

Option 1: Statements 2 and 3 only.
Option 2: Statements 3 and 1 only.
Option 3: All the 3 statements.
Option 4: Statements 1 and 2 only.

Reference no: EM132993417

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