Levels within an organisation are often categorised according to the types of responsibilities placed on managers. When a responsibility centre is considered a cost centre,
Definitions:
Compound Interest
Interest calculated on the initial principal and also on the accumulated interest from previous periods.
Net Present Value
A method of evaluating investments by calculating the present value of all expected future cash flows, minus the initial investment cost.
Rate of Return
A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.
Desired Rate
An anticipated rate of return on investment or interest rate target, often set as a benchmark for financial decisions or investment appraisal.
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