ARR Flashcards

1
Q

Step 1

A

add up projects total profit (Take away any costs)

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2
Q

Step 2

A

Divide the projects profit by the number of years (Do not include 0)

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3
Q

Step 3

A

Divide your answer in step 2 by the initial size of the investment

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4
Q

Step 4

A

Multiply your answer to step 3 by 100 to get your ARR

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5
Q

Step 5

A

Compare ARR with the target return

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