P2 Formulas Flashcards
TPAR
return / fact hr (TP cont / time needed on bottleneck)
_______________________________________________________
cost / fact hr (total fact costs / total time on bottleneck)
Compound Interest
end total = initial investment x (1+r)^n
Discount factor
1
________
(1+r)^n
Annuity factor
1- (1+r)^n
____________
r
Perpetuity
annual cashflow
__________________
r
IRR =
R1 + (R2 - R1) x NPV1
_______
NPV1-NPV2
MIRR =
(PV inflows / outflows)^1/n x (1+r) - 1
ARR =
av. annual profits (cash inflow - depn / no. yrs)
________________________________________________
av. value of investment (initial inv + res value / 2)
Profitability Index =
NPV / initial investment
To convert cost of capital between money & real
(1+m)=(1+r)(1+i)
Price Elasticity of Demand (PED) =
% change demand
___________________
% change price
Optimum price
Total contribution
P = a - bq
MR = a - 2bq
total cont = (P - MC) x q
Profit = total cont - fixed costs
operating profit margin =
op profit / turnover x 100%
Asset turnover =
turnover / cap employed
ROCE / ROI =
Op profit / cap employed x100%
Residual Income (RI) =
controllable profit - (cap employed x cost of cap)
Economic Value Added (EVA)
- NOPAT
- Econ value of Assets
- EVA =
- NOPAT
+op profit
+ dev costs
- 1 yr amortisation dev costs
+ accounting depn
- econ depn - Econ value of assets
+ replacement costs
- econ depn
+ remaining dev costs amortisation
+ working capital
+ total provision for doubtful debts - EVA = NOPAT - (econ value of assets x cost of cap)