# BUSINESS CALCULATIONS

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luluzoca's
version from
2017-11-07 09:41

## Section

Question | Answer |
---|---|

Payback | Calculates how long it will take to pay back the cost of the initial investment. Hint - The longer The period the greater the degree of risk and uncertainty. |

Average Rate Of Return | Calculates average profit as a percentage of the cost of the initial investment Hint - The higher the value the better the proposed investment. |

Net Present Value | Calculates the total return on an investment taking into account the time value of money. Hint - A positive Value implies a worth while investment. |

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