Net present value $($NPV$),$

Rate of Return $($ROR$)$

Payback period $($PBP$),$

Benefit$-$cost ratio $($BCR$),$

These success measures allow project managers to conduct a balanced cost$-$benefit analysis that covers different aspects such as profitability, liquidity and riskiness of project options. At the same time, these indicators are comparatively simple to calculate and easy to understand in the course of stakeholder communication. $$

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$1)$Provide a definition for each of the tools provided above and provide $1$ problem scenario for the use of one of these tools. $$

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$2)$ What does MARR stands for and how is it used in project selection and budget allocation? $$