Examlex

Solved

Discuss How Economists Calculate NI, PI and DI

question 32

Essay

Discuss how economists calculate NI, PI and DI.


Definitions:

Payback Period

The time required for the return on an investment to repay the sum of the original investment.

Cash Inflows

The total amount of money being transferred into a business, usually from its operations, investments, or financing.

Capital Outlay

Expenditures for acquiring or upgrading physical assets such as equipment or property.

Average Rate of Return

A measure of the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Related Questions