Investment Appraisal Family Flashcards
1
Q
Average Rate of Return ARR
A
Net Return (profit) per annum ÷ Capital Outlay (cost) X 100
2
Q
Net Present Value (NPV)
A
Present Value – Initial Cost
Average Rate of Return ARR
Net Return (profit) per annum ÷ Capital Outlay (cost) X 100
Net Present Value (NPV)
Present Value – Initial Cost