Exam (elaborations)
UNIT 7 Business Decision Making: FORMULAS
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Average rate of return (ARR) - calculates the average annual profit of an investment project, expressed as a percentage of the initial sum of money invested. Total net cash flow — investment = project lifetime 'profit' 'Profit'/number of years life of project to calculate average annual return (in £'s) Use answer to number 2 to carry out the sum Average annual return / initial investment × 100 Break-even Output - = Fixed Cost / Contribution per Unit
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Institution
UNIT 7
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UNIT 7
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- Institution
- UNIT 7
- Course
- UNIT 7
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- Uploaded on
- January 6, 2023
- Number of pages
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- Written in
- 2022/2023
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average rate of return arr calculates the average annual profit of an investment project
-
expressed as a percentage of the initial sum of money invested total net cash flow — investment proj
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