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WorksheetsMaking Capital Investment Decisions
Total questions: 5
Worksheet time: 3mins
How many methods of investment can be found in Practice ?
3
5
4
6
ARR(Accounting rate of return) is ...
Sum of discounted values of the cash flow of the investment
Lenght of time that it takes for the clash flow for the initial investment to be repaid
Profit from the project expressed as percentage of avg investment
Maximun periods of acceptable returns of investments
Paybak period (PP) is ...
Sum of discounted values of the cash flow of the investment
Lenght of time that it takes for the clash flow for the initial investment to be repaid
Profit from the project expressed as percentage of avg investment
Maximun periods of acceptable returns of investments
Net Present value(NPV) is ...
Sum of discounted values of the cash flow of the investment
Lenght of time that it takes for the clash flow for the initial investment to be repaid
Profit from the project expressed as percentage of avg investment
Maximun periods of acceptable returns of investments
IRR(Internal rate of Return) is ...
Sum of discounted values of the cash flow of the investment
Lenght of time that it takes for the clash flow for the initial investment to be repaid
Profit from the project expressed as percentage of avg investment
is the discount rate that, when applied to the cash flows of a project, causes it to have a zero NPV
