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Q. Merits of accept-reject criteria?
Merits of ARR:-
(i) Simple: - ARR method is very simple to understand and use.
(ii) Complete life time of the project is considered: - ARR method utilizes the entire profits earned during the life time of the project in calculating the project's profitability.
a) Year 2 Year 1 Stock turnover (350/500) * 365 = 255.5 days (250/450) * 365 = 202.7 days
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AThe project is expected to have an initial outlay of $200million and generate cash inflows of $64million for the next 12 yearssk question #Minimum 100 words accepted#
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