Making investment decisions 0.0 / 5 ? Business StudiesFinancial PlanningA2/A-levelAQA Created by: Georgew298Created on: 10-04-16 14:29 What is payback? Looks at the length of time takes for an investment for an investment to pay itself back (measured in years and months) 1 of 6 What is payback used for? Can be used for analysing re-investment and PESTLE 2 of 6 How is it calculated? Income required to breakeven / contribution per month 3 of 6 What is average rate of return? Looks at total return from an investment divided by the lifetime of the investment (%) 4 of 6 How is it calculated? (Average rate of return / initiual outlay) x100 5 of 6 What is net present value? Present value of all money coming in from profit in the future 6 of 6
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