Start learning →

ARR disregards

Athe cost of the asset
Bthe size of investment
Cthe time value of money
Dthe net income earned
Answer & Solution
Correct answer: C. the time value of money
Profits in all years are averaged without discounting, so timing is ignored.
Practise this question with Quill — CA Final →

Keep practising Capital Budgeting

Browse all Capital Budgeting questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Capital Budgeting lesson →
Related questions