Investment Appraisal Flashcards
1
Q
What is it
A
2
Q
What three are their
A
Payback
Average rate of return
Net present value
3
Q
Payback
A
measures how long it takes to make back the money invested by the business
4
Q
Average rate of return
A
(Total net profit/ number of years ) x 1oo
(Initial cost)
5
Q
Net present value
A
Calculates the monetary value now of a projects future cash flow
