ARR Flashcards
1
Q
Step 1
A
add up projects total profit (Take away any costs)
2
Q
Step 2
A
Divide the projects profit by the number of years (Do not include 0)
3
Q
Step 3
A
Divide your answer in step 2 by the initial size of the investment
4
Q
Step 4
A
Multiply your answer to step 3 by 100 to get your ARR
5
Q
Step 5
A
Compare ARR with the target return