Making investment decisions

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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)
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What is payback used for?
Can be used for analysing re-investment and PESTLE
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How is it calculated?
Income required to breakeven / contribution per month
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What is average rate of return?
Looks at total return from an investment divided by the lifetime of the investment (%)
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How is it calculated?
(Average rate of return / initiual outlay) x100
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What is net present value?
Present value of all money coming in from profit in the future
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Card 2

Front

What is payback used for?

Back

Can be used for analysing re-investment and PESTLE

Card 3

Front

How is it calculated?

Back

Preview of the front of card 3

Card 4

Front

What is average rate of return?

Back

Preview of the front of card 4

Card 5

Front

How is it calculated?

Back

Preview of the front of card 5
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