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BUSINESS CALCULATIONS

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

Section

Question Answer
PaybackCalculates 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 ReturnCalculates average profit as a percentage of the cost of the initial investment Hint - The higher the value the better the proposed investment.
Net Present ValueCalculates 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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