Equivalent Annual Cost – Meaning, Formula, Example
Equivalent Annual Cost: MeaningEquivalent Annual Cost (or EAC) refers to the yearly cost of owning and maintaining an asset over its life. It simply… Read Article
Techniques of Capital Budgeting
What is the Accounting Rate of Return? Its Advantages and Disadvantages
What is the Average Accounting Rate of Return (ARR)?The average accounting rate of return is the simplest investment appraisal technique. It is a simple… Read Article
Social Cost-Benefit Analysis in Project Management
Social Cost-Benefit Analysis in Project Management: IntroductionCost-benefit analysis is a process of deciding whether to go with a business decision or not on the… Read Article
Project IRR vs Equity IRR
IRR, or the Internal Rate of Return, is one of the most popular and effective ways to evaluate the viability of long-term projects. Basically,… Read Article
Internal Rate of Return and Time-Weighted Return
What do we mean by Internal Rate of Return and Time-Weighted Return?Internal Rate of Return and Time-weighted return are both financial analysis metrics that… Read Article
Compounded Annual Growth Rate vs. Internal Rate of Return
Meaning of CAGRThere are various metrics or indicators in the financial world to understand the return and quality of investment returns. Two such metrics… Read Article
Incremental Cash Flows
What is the Incremental Cash Flow?Incremental cash flow is the extra cash flow a business will generate by investment in a new project over… Read Article
Discounted cash flow
Meaning of Discounted Cash FlowDiscounted cash flow analysis uses forecasted cash flows of a company to discount them to its present value. It makes… Read Article
Annualized return on investment
Meaning of Annualized return on investmentReturn on Investment or ROI is a financial ratio that shows the return received from a business investment or… Read Article
Terminal Value
Meaning of Terminal ValueTerminal Value is the present value of all future cash flows of a business or a project with an assumption of… Read Article
ROI vs IRR – All You Need To Know
Return on Investment (ROI) and Internal Rate of Return (IRR) are two popular metrics to measure the performance of an investment. Although the internal… Read Article