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What is Rate of Return Method Explained about?

The document discusses methods for computing the rate of return (ROR) on investment alternatives. It explains that ROR expresses benefits versus costs as an interest rate. It provides steps to calculate ROR through trial and error. It also discusses using incremental rate of return (IROR) when alternatives require different initial investments. The minimum attractive rate of return (MARR) is introduced to evaluate whether excess funds from a lower cost alternative should be invested elsewhere. Matrix method

Author

S.Baktha Kolahalan

Language

EN