Investment Decisions Flashcards
0
Q
Payback Period
A
Total initial investment / Expected annual net cash flow
1
Q
Present value
A
Cash Flow / (1 + r) to the nth power
Or
Amount of Cash Flow × Discount Rate Factor
Payback Period
Total initial investment / Expected annual net cash flow
Present value
Cash Flow / (1 + r) to the nth power
Or
Amount of Cash Flow × Discount Rate Factor