Question: The major difference between the net present value method and the annual rate of return method in evaluating a capital project is the ARR method

The major difference between the net present value method and the annual rate of return method in evaluating a capital project is the ARR method is easier for accountants to justify than the NPV method . the ARR method focuses on overall profitability of a project . the NPV method focuses on the overall profitability of a project . the NPV method is easier for managers to justify than the ARR method .

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