2423901
Description
Flashcards by barbare.rukhadze, updated more than 1 year ago
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Created by barbare.rukhadze
over 9 years ago
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| Question | Answer |
| Conducting investment appraisal | * Payback * Average rate of return * Net present value |
| Payback | This is the time it takes for a project to repay its initial investment |
| Average rate of return (ARR) | The ARR assesses the worth of the investment by calculating the yearly return on the |
| Calculating average rate of return (ARR) | |
| Net present value | NVP calculates the monetary value now of the project's future cash flows ($! now or $1 in a year?) |
| Adv/ Dis of NPV | |
| Adv/ Dis of ARR | |
| Risks and influences of investment appraisal | |
| Qualitative factors to consider |
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