[Verse 1] When you need to measure how your project pays ARR will show you in accounting ways Take your average profit year by year Divide by investment, make it crystal clear [Chorus] Average profit over average investment That's the ARR measurement Simple percentage, easy to see But limitations you must believe ARR ignores the time value flow Cash timing it will never show [Verse 2] Calculate with income statement gains Not the cash flows running through your veins Depreciation methods change your score Book profits aren't cash at your door [Chorus] Average profit over average investment That's the ARR measurement Simple percentage, easy to see But limitations you must believe ARR ignores the time value flow Cash timing it will never show [Verse 3] Compare it to your hurdle rate If ARR's higher, don't hesitate But remember NPV tells you more With discounted cash flows at the core [Bridge] IRR considers timing's power Payback shows recovery hour ARR is simple but incomplete For full analysis, use the complete suite [Chorus] Average profit over average investment That's the ARR measurement Simple percentage, easy to see But limitations you must believe ARR ignores the time value flow Cash timing it will never show [Outro] Use ARR for quick comparison But never make it your only companion Capital budgeting needs more than one To make decisions when day is done
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