Theme 3/4 equations Flashcards
1
Q
GDP per capita
A
National income / population
2
Q
Payback
A
Cumulative cash flow = no. of years
Initial investment – cumulative cash flow = x
Net cash flow of following year / x = no. of months
3
Q
Average rate of return
A
Total net cash flow / no. of years = x
x / initial investment X 100
4
Q
Net present value
A
Net cash flow X discount factor of that year
Add up
5
Q
Expected value
A
[Decision trees]
Final outcome of success X chance
Final outcome of failure X chance
6
Q
Net gain
A
[Decision trees]
Initial cost – expected value
7
Q
Return on capital employed
A
Operation profit / total equity + non-current liabilities
8
Q
Gearing
A
Non-current liabilities / total equity + non-current liabilities
9
Q
Total equity
A
Total assets – total liabilities
