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Based on their research results,Lewinsohn and colleagues (1985) ,assert that
Average Rate of Return
It calculates the return, generated over a period of time, of an investment compared to the initial investment.
Net Present Value Method
A method in capital budgeting that evaluates an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
Present Value
The estimated current value of a forthcoming sum of money or series of cash inflows, considering a certain rate of return.
Method
A systematic way or approach used to accomplish a task or solve a problem, often applied in research, analysis, or strategic planning.
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