Exam 3 Equations Flashcards
(9 cards)
1
Q
Margin =
A
NOI / Sales
2
Q
Turnover =
A
Sales / AOA
3
Q
ROI (return on investment) =
A
(NOI / Sales) X (Sales / AOA)
4
Q
Residual Income =
A
NOI - (AOA x Min. Required Rate)
5
Q
Minimum Required Rate of Return =
A
Min. Required Amount / AOA
6
Q
Simple Rate of Return
A
Net Income / Initial Investment
7
Q
Project Profitability Index =
A
NPV / Investment Required
8
Q
Net Present Value =
A
(Cash Flow x Chart Rate) - Initial Investment
9
Q
IRR or Payback Period =
A
Investment Required/Annual Net Cash Inflow
