Which of the Following Is a Limitation of AARR Method

question 42

Multiple Choice

Which of the following is a limitation of AARR method?

• A) It is difficult to compare projects as its result is expressed in dollars and not in percentage terms.
• B) It does not consider income earned throughout a project's expected useful life.
• C) It does not track initial investment.
• D) It does not consider time value of money.

---

Definitions:

Orogeny

The formation of mountains or the time period during which tectonic activity causes deformation and forms mountains.

Island Arc

A chain of volcanically active islands arranged in an arc, situated along the boundary of tectonic plates, generally forming over a subducting plate.

Avalonia

An ancient microcontinent or terrane whose history is recorded in the rocks of Eastern North America, the British Isles, and mainland Europe.

Subduction

The geological process by which an oceanic tectonic plate is forced beneath another plate, contributing to geologic phenomena such as mountain building.