[Verse 1] Picture quarterly statements stacked like autumn leaves Profits gleaming gold beneath accounting trees Take the average earnings from your project's reign Divide by initial investment, watch the percentage gain ARR whispers simple truths in boardroom halls But beware the siren song when cash flow calls [Chorus] Average profit over initial cost ARR shows what accounting found, but timing's lost Depreciation games can twist the tale While cash sits waiting, profits might just fail Calculate, appreciate, but don't be blind ARR's just one piece of the financial mind [Verse 2] Machine costs fifty thousand, saves ten each year Depreciation magic makes five thousand disappear Net profit sits at five, divide by fifty base Ten percent return emerges, wearing accounting's face But when will cash arrive? ARR stays silent here Real money flows like rivers, not like crystal clear [Chorus] Average profit over initial cost ARR shows what accounting found, but timing's lost Depreciation games can twist the tale While cash sits waiting, profits might just fail Calculate, appreciate, but don't be blind ARR's just one piece of the financial mind [Bridge] NPV counts tomorrow's dollars today IRR finds the rate where values fade away Payback tells you when investment breaks even clean But ARR ignores the clock, stays trapped between Accounting rules and economic truth collide When book profits dance but cash wants to hide [Verse 3] Benchmark ARR against your hurdle rate If fifteen percent's your bar, ten won't celebrate Compare competing projects, rank them high to low But remember book income isn't cash flow's glow Residual values, working capital shifts ARR pretends these phantoms don't exist [Chorus] Average profit over initial cost ARR shows what accounting found, but timing's lost Depreciation games can twist the tale While cash sits waiting, profits might just fail Calculate, appreciate, but don't be blind ARR's just one piece of the financial mind [Outro] Simple math meets complex truth ARR's the veteran, DCF's the youth Use them both to paint complete Financial pictures, bitter-sweet
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