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Business: Finance
Investment Appraisal
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Cards (4)
Payback Period
(months) = (
Balance
Outstanding
/
Full
Amount
for the
Year
) x
12
Average Rate of Return
= (
Average Annual Profit
/
Initial Investment Costs
) x 100
Net
Present Value =
Total Discounted Cash Flow
-
Investment Cost
How long it takes for a project to pay back the
initial investment
costs
Payback Period