Other questions in this quiz

2. Total annual profit =

  • Investment cost + total disposal value / 2
  • Net profit per unit x replacement number
  • Total annual profit / Average annual investment x 100
  • Total cost of unit x replacement number

3. Total investment cost =

  • Total cost of unit x replacement number
  • Total annual profit / Average annual investment x 100
  • Net profit per unit x replacement number
  • Investment cost + total disposal value / 2

4. Investment in new machinery - cash flow graph (Should investment be taken)

  • Years (Horizontal); Vertical - Capital expenditure; Savings; Disposal; Net cash flow; Discount factor; Present value = Net presnt value
  • Years (Vertical); Horizontal - Capital expenditure; Savings; Disposal; Net cash flow; Discount factor; Present value = Net presnt value

5. Average annual profit =

  • Net profit per unit x replacement number
  • Total cost of unit x replacement number
  • Total annual profit / Average annual investment x 100
  • Total anual profit x life time until replacement (yrs) / life time until replacement (yrs)
  • Investment cost + total disposal value / 2

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