Question: Most entities, when making an investment decision using the ARR method, will set a minimum level of return known as their Required Rate of Return

Most entities, when making an investment decision using the ARR method, will set a minimum level of return known as their Required Rate of Return (RRR).This RRR is based on:

the entity's past performances.

currently available returns from other investments outside the industry.

any of the above measures can be used to set a RRR.

industry averages.

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