Search results
Results from the WOW.Com Content Network
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]
To calculate a more exact payback period: Payback Period = Amount to be Invested/Estimated Annual Net Cash Flow. [4] It can also be calculated using the formula: Payback Period = (p - n)÷p + n y = 1 + n y - n÷p (unit:years) Where n y = The number of years after the initial investment at which the last negative value of cumulative cash flow ...
The discounted payback period (DPB) is the amount of time that it takes (in years) for the initial cost of a project to equal to the discounted value of expected cash flows, or the time it takes to break even from an investment. [1] It is the period in which the cumulative net present value of a project equals zero.
Minimal DSCR set for a project depends on riskiness of the project, i.e. on predictability and stability of cash flow generated by it. Related to this is the Project life cover ratio (PLCR), the ratio of the net present value of the cash flow over the remaining full life of the project to the outstanding debt balance in the period. It is a ...
t is the time period; n is the number of time periods to "maturity" or exit; g is the sustainable growth rate at that point; In general, "Value of firm" represents the firm's enterprise value (i.e. its market value as distinct from market price); for corporate finance valuations, this represents the project's net present value or NPV.
From January 2008 to May 2012, if you bought shares in companies when Harry R. Jacobson joined the board, and sold them when he left, you would have a -35.6 percent return on your investment, compared to a -10.3 percent return from the S&P 500.
From January 2008 to December 2012, if you bought shares in companies when Vance D. Coffman joined the board, and sold them when he left, you would have a -8.1 percent return on your investment, compared to a -2.8 percent return from the S&P 500.
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. For example, a project has the following inflows years Inflows respectively 1 100,000 2 150,000 3 200,000 If the project's payback is 2 years having an outflow of 250,000 the cut off period must be 2 years ...