Accounting Exam 3 Flashcards
(7 cards)
1
Q
Internal rate of return
A
Investment required/Annual Cash inflow
Then find answer on grid to find closest %
2
Q
Simple rate of return
A
Annual incremental NOI/Initial investment
3
Q
Straight line depreciation
A
(Cost of equipment - salvage value)/useful life
4
Q
Annual net cash inflow
A
NOI + depreciation
5
Q
Payback period
A
Investment required / annual net cash inflow [NOI+depreciation]
6
Q
Profitability Index
A
Present value of cash inflows ÷ Investment required by the project
7
Q
incremental NOI
A
Incremental revenues - incremental expenses
