Examlex
List the four key factors in conducting a business analysis.
Accounting Rate of Return
The return on an investment calculated by dividing the average annual profit by the initial investment cost, typically used to assess the profitability of potential investments.
Net Cash Flow
The difference between a company's cash inflows and outflows during a specific period.
Capital Budgeting
The process of evaluating and selecting long-term investments that are in line with the strategy and financial performance of an organization.
Payback Period
The payback period is a capital budgeting metric that measures the time required for an investment to generate cash flows sufficient to recover its initial cost, helping assess the risk and efficiency of an investment.
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