Why is it crucial to estimate the MARR correctly?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Why is it crucial to estimate the MARR correctly?

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It is the minimum return rate on the project which an entity computes prior to the staring of the project.
It crucial because it helps in making a decision regarding the project. It helps in deciding whether the project needs to be accepted or declined on the base of the feasibility of the project which is determined on the MARR basis.

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