3C Ratio Flashcards
1
Q
NPV
A
Cash Inflow - Investment
2
Q
Project Profitability Index
A
PV of future inflow / Investment
3
Q
Accounting Income
A
Annual Savings – depreciation
4
Q
Accounting Rate of Return
A
Accounting Income / Investment
5
Q
Usingn standard deviation w/ investments
A
Mean Return / Standard Deviation
6
Q
Expected Value
A
Sales x Probability