Respuesta :

The more desirable an investment is when compared to others is its ARR. When evaluating projects, more than half of return in large organizations take ARR into account  on investment is better.

The main benefit of ARR is that it is simple to calculate and comprehend. Choosing a company with a high return on investment is crucial for investors since it shows that the business is successful in turning a profit from the return . If there are other investment options with a positive ROI, investors will often steer clear of a negative ROI venture. Among the safest investing options are certificates of deposit (CDs), money market accounts, municipal bonds, and Treasury Inflation-Protected Securities (TIPS). With certificates of deposit, you hand over cash to a bank, which will then return it to you with interest. Since any return below the cost of capital would result in a negative return on the company's debt and equity, the ARR  cost of capital represents the lowest rate of return at which a company should invest money. Never should the required ARR be less than the cost of capital; it may even be significantly higher.

Learn more about ARR  here:

brainly.com/question/12988548

#SPJ4