Project Evaluation

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Lectures 1 and 2
kedy3gei
Flashcards by kedy3gei, updated more than 1 year ago
kedy3gei
Created by kedy3gei almost 11 years ago
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Question Answer
Net present value PV = C1/(1+r)^n
Future Value FV = PV x (1+r)^n
time to break even Imax /(tbe-timax)
average rate of return Rmax/ (tmax - timax)
sales lifetime trmax- timax
Phases of the LCA 1 - definition of goals and scope 2- Life cycle inventory 3- Life cycle impact assesment 4 - Interpretation
what does the LCIA require? selection of impact categories, category indicators and characterisation models
cost of owners capitale dividend per share/ share price x 100
cost of reserves dividend per share/ share price x 100
cost of loan interest rate x (100-tax rate)/100
cost of investment funds x.owners capital + y.cost of reserves + z.cost of loan
rate of return on an investment F=P(1+i)^N
what is oppurtunity cost? the cost of NOT doing something with your cash
How do you tell if your proposed investment is a good one? ROR > MARR
Annual average proceeds return/duration
Return on investment AAP/ Initial
What is the NVP of a reliable source? 0 PV(from investment)=PV(investment cost)
Internal Rate of Return 0 = P0 + P1/(1+IRR) + P2/(1+IRR)2 + P3/(1+IRR)3 + . . . +Pn/(1+IRR)n where P0, P1, . . . Pn equals the cash flows in periods 1, 2, . . . n, respectively
What is the MARR? The lowest rate of return you would be willing to accept
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