Other Ratios Flashcards
1
Q
Accounting rate of return
A
Average annual profit (total profit over investment // life of invest)
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Average capital investment
(Opening investment +residual value / 2)
2
Q
Payback period
A
How much investment cost - residual value
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Life
3
Q
Net present value
A
Net cash inflow expected to reviewed in the period x 1- (1+
