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Assuming that the cash flow calculated does not include the investment made in the project, a profitability index of 1 indicates break-even. Any value lower than one would indicate that the project's present value is less than the initial investment. As the value of the profitability index increases, so does the financial attractiveness of the ...
Less than 10% The higher the better Profitability index Greater or equal 1.0 Less than 1.0 The higher the better Internal rate of return Greater or equal 10% Less than 10% The higher the better Debt coverage ratio Greater or equal 1.2 Less than 1.2 The higher the better Break even ratio Less than or equal 85% Greater than 85% The lower the better
Each cash inflow/outflow is discounted back to its present value (PV). Then all are summed such that NPV is the sum of all terms: = (+) where: t is the time of the cash flow; i is the discount rate, i.e. the return that could be earned per unit of time on an investment with similar risk
A BCR can be a profitability index in for-profit contexts. A BCR takes into account the amount of monetary gain realized by performing a project versus the amount it costs to execute the project. The higher the BCR the better the investment. The general rule of thumb is that if the benefit is higher than the cost the project is a good investment.
Given any ratio, one can take its reciprocal; if the ratio was above 1, the reciprocal will be below 1, and conversely. The reciprocal expresses the same information, but may be more understandable: for instance, the earnings yield can be compared with bond yields, while the P/E ratio cannot be: for example, a P/E ratio of 20 corresponds to an ...
The "25/50" in the name indicates that no single company can make up more than 25% of the index's weight, and the combined weight of all holdings of over 5% can't exceed 50% of the index's total ...
The producer price index released a day earlier on January 14 reported a modest 0.3% increase in wholesale prices in December, rising 3.3% year over year, up from 3% in November.
The popularity of expedited delivery has resulted in more than 30% of orders coming from customers and members that elected to pay a convenience fee to receive their scheduled delivery in less ...