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Zimbabwe's Inflation Problems Arose Mainly When Its President, Robert Mugabe

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Zimbabwe's inflation problems arose mainly when its president, Robert Mugabe, seized the farmland of the white minority and turned it over to his supporters, which disrupted production and undermined the country's tax base.


Definitions:

Payback Period

The length of time it takes for an investment to generate enough cash flow to recoup its original cost.

Accounting Rate of Return

The accounting rate of return (ARR) is an accounting metric that measures the profitability of an investment by dividing the average annual profit by the initial investment cost.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholders' wealth maximization.

Time Value of Money

A financial principle that posits money available now is worth more than the same amount in the future due to its potential earning capacity.

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