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

Name: For most projects, the average accounting return (AAR) should be less than the IRR.
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Quizplus · Accepted Answer

The average accounting return (AAR) is not directly comparable to the internal rate of return (IRR) as they are calculated differently and measure different aspects of a project's performance. AAR is based on accounting profits, while IRR is based on cash flows.

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