Examlex
The environment in which organizations operate today is becoming more and more complex.
Business environment factors can be divided into four major categories. What are these categories?
Profitability Index
A calculation used in capital budgeting to determine the relative profitability of an investment, computed as the present value of future cash flows divided by the initial investment cost.
Crossover Rate
The crossover rate is the rate of return at which two projects have the same net present value (NPV), used in capital budgeting to compare the desirability of investments or projects.
Profitability Index
A financial tool used to evaluate the attractiveness of an investment by dividing the present value of future cash flows by the initial investment cost.
Rate Of Return
The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.
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