Exclusive Projects Mutually and ARR

*Note : I am going to add my Corporate Strategy Assigment when i was at the university about Financial Investment Methods. Enjoy it :)

PART -9

6.2 EXCLUSIVE PROJECTS MUTUALLY & ARR

In this method, Average Rate of Return is useful to compare few different projects.

If one of the project has higher Average Rate of Return, the organisation will select that project. Only reason is that new ARR has to be bigger than the expected ARR.