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The primary draw back of typical fee of return approach (accounting rate of return approach) is the fact it does not straight take into consideration the predicted income streams within the proposition plus the timing of the money streams.
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Remember to Observe that industries with a predictable marketplace and less specialized risks (power generation, infrastructure, and oil generation) Generally make the most of this financing approach. On top of that, the project stays off the equilibrium sheet for each sponsors as well as host administration.
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