What Is a Pivot Item

question 7

Essay

What is a pivot item?

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Required Return

The minimum amount of profit an investor expects to receive on an investment, accounting for various levels of risk.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, which allocates an equal amount of depreciation each year over the asset's useful life.

Salvage Value

The forecasted salvage value of an asset when it's no longer useful, applied in determining depreciation amounts.