Search results
Results from the WOW.Com Content Network
Cutoff period is a term in finance. In capital budgeting , it is the period (usually in years) below which a project's payback period must fall in order to accept the project. Generally it is the time period in which a project gives its investment back if a project fails to do so the project will be rejected.
In business and for engineering economics in both industrial engineering and civil engineering practice, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other projects. [1]
Payback period in capital budgeting refers to the time required to recoup the funds expended in an investment, or to reach the break-even point. [1]For example, a $1000 investment made at the start of year 1 which returned $500 at the end of year 1 and year 2 respectively would have a two-year payback period.
[21] These tax cuts may have boosted the economy, however, they may have stemmed from other causes. The American economy grew at a rate of 1.7%, 2.9%, 3.8% and 3.5% in the years 2002, 2003, 2004 and 2005, respectively. [citation needed] In 2001, the Federal Reserve lowered the benchmark fed funds rate from 6% to 1.75%. [citation needed]
The forecast period must be chosen to be appropriate to the company's strategy, its market, or industry; [2] theoretically corresponding to the time for the company's return to "converge" to that of its industry, with constant, long term growth applying to the continuing value thereafter; although, regardless, 5–10 years is common in practice ...
From January 2008 to December 2012, if you bought shares in companies when Monica C. Lozano joined the board, and sold them when she left, you would have a -17.7 percent return on your investment, compared to a -2.8 percent return from the S&P 500.
From January 2009 to December 2012, if you bought shares in companies when Virgis W. Colbert joined the board, and sold them when he left, you would have a -19.0 percent return on your investment, compared to a 53.1 percent return from the S&P 500.
Fed rate cut winners 1. Stock market investors. Interest rates typically fall after federal funds rate cuts, allowing the stock market to perk up — and we’re already seeing this play out ...