Formulas Flashcards
1
Q
ARR
A
Average profit per year
———————————
Initial cost of project
2
Q
NPV
A
Total discounted cash flows - initial cost
3
Q
Total float time
A
LFT - duration - EST
4
Q
Capital employed
A
Non current liabilities + total equity
5
Q
Gearing
A
Non current liabilities
———————————
Non current assets + total equity
6
Q
ROCE
A
Operating profit
————————-
Non-current liabilities + equity
