8-15-11 notes - NPI ROI = Margin x turnover Payback person...

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Net Present Value = Discounted Net Cash Flow Opportunity cost = Internal Rate of Return= Hurdle Rate= Management’s Expected rate BC return (Discount Rate) Present Value (absolute Value) PV+ Earning Power = Future Value (1+R) PV+ Earning Power = Future Value Annuity= Stream of Payments wroth 1. Equal payment amount 2. Spread over equal time periods Capital decision I Screening decision (IRR)
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Unformatted text preview: NPI ROI = Margin x turnover Payback person II Preference Qualitative tool= synergy Ranking Priorities III Selection Decisions Organizational politics IV Post Audit ( performance measurements ) Upstage benefit Short time for return Understate cost Price Variances = AQ (AP-SP) Q Variances= SP (AQ-SQ) Total Variances= P Var + Q var...
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