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For Most Projects, the Average Accounting Return (AAR) Should Be

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For most projects, the average accounting return (AAR) should be less than the IRR.


Definitions:

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A situation in which one party in a transaction has more or superior information compared to another, potentially leading to an imbalance or unfair advantage.

Perfect Knowledge

An assumption in economics that all consumers and producers have complete and accurate information about the price and quality of goods and services, making markets more efficient.

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Refers to a secondary market where pre-owned appliances are bought and sold.

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A health insurance plan that provides coverage to a group of members, usually employees of a company or members of an organization, often resulting in reduced cost for participants.

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