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A company's inventory control system seeks to minimize each of the following cost categories except:
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.
Present Value Index
A calculation used to assess the profitability of an investment relative to its current cost, by discounting future cash flows.
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