investment appraisals Flashcards

formulas

1
Q

NPV (net present value) calculation

A

cashflow xdiscount factor = present value, total -investment

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

ARR (average rate of return)

A

average profit/ asset’s initial cost x100

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

payback

A

number of full years +amount of investment not recovered/revenue generated in the next year

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