Unformatted text preview: = Op. Income – (Op. Assets X Desired ROI) _ R.I. w/ Addtl Invest : 4mil Invest, 600k addt’l Invest, 14% des. ROI 720k + 600k --(8,000,000 x .14) 200,000 CH10-• Annuity: o Equal pmt. amounts o Equal time intervals o Constant Rate of Return • Net PV= PV all cash inflows Minus: PV of cash outflows • Internal Rate of Return: PV cash inflows=PV outflows • PV Index= PV of Cash inflows PV outflows • Payback Period= Net Cost Invest. Annul Net Cash Inflows • Unadjusted R of R= Avg. incrmntl increase In annual net income _ Net Cost of original Investment •...
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This note was uploaded on 07/06/2009 for the course MGMT 303 taught by Professor Scott during the Spring '08 term at Agnes Scott College.
- Spring '08