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Accounting Rate of Return (ARR) and Internal Rate of Return (IRR) are two decision models...

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Accounting

Accounting Rate of Return (ARR) and Internal Rate of Return (IRR) are two decision models used in the capital budgeting process. Explain the rationales as to why these models may be applied, as well as the similarities between the two models. In your response, make sure you explain the benefits, common uses, and limitations of each model. Lastly, could you recommend an alternative model which address some of these limitations while still providing managers with a similar usage context?

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