UNIT 7 Business Decision Making: FORMULAS
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
Escuela, estudio y materia
- Institución
- UNIT 7
- Grado
- UNIT 7
Información del documento
- Subido en
- 6 de enero de 2023
- Número de páginas
- 4
- Escrito en
- 2022/2023
- Tipo
- Examen
- Contiene
- Respuestas
Temas
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average rate of return arr calculates the average annual profit of an investment project
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expressed as a percentage of the initial sum of money invested total net cash flow — investment proj