investment appraisal Flashcards

1
Q

Average Rate of Return ARR

A

Net Return (profit) per annum ÷ Capital Outlay (cost) X 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Net Present Value (NPV)

A

Present Value – Initial Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Payback Period

A

Amount Required ÷ Net Cash Flow in Year X 12

How well did you know this?
1
Not at all
2
3
4
5
Perfectly