component 2 formulas Flashcards
1
Q
contribution per unit
A
selling price- variable cost per unit
2
Q
total contribution
A
= contribution per unit x units sold
3
Q
profit
A
total contribution- fixed costs
4
Q
net cash flow
A
inflow - outflow
5
Q
payback
A
cumulative cash flow value- for the last year of - figures / NCF for the year after X12
6
Q
ARR
A
average annual profit - final cumulative cash flow value/ lifetime of project
AAP/ initial cost of investment X 100 = %
higher the % more attractive
7
Q
NPV
A
NCF X discount value = present value
NPV= add up all present values - cost of intial investment
8
Q
A
