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Average Accounting Return
A financial metric that calculates the average profits earned on investments relative to the book value of assets over a certain period.
Mutually Exclusive Investments
Investment options where the choice of one option precludes the selection of another, requiring careful analysis to determine the most beneficial choice.
Incorrect Decisions
Decision-making instances that lead to unfavorable outcomes or failures due to errors in judgement, analysis, or implementation.
Target AAR
Target Average Annual Return (AAR) is a financial goal or benchmark for the average yearly return on an investment.
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