What Is Methods Analysis

question 185

Short Answer

What is methods analysis?

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Definitions:

Net Present Value Analysis

A method used in capital budgeting to evaluate the profitability of an investment, calculating the present value of expected cash flows less the initial investment.

Capital Investment

Capital investment denotes funds invested in a company or enterprise for the purpose of furthering its business objectives, such as purchasing machinery or buildings.

Present Value

Today's value of future financial sums or cash flow streams, considering a specific rate of return.

Compound Interest

Interest computed on both the original amount of money and on the interest that it has already earned in past periods.