RUMUS2 STUDY KELAYAKAN DALAM PEMBANGUNAN RS 2023

 The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments. IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis. IRR calculations rely on the same formula as NPV does.

Modified Internal Rate of Return (MIRR) is a method of calculating the return on an investment with multiple, irregular cash flows

What Is a Rate of Return (RoR)?

A rate of return (RoR) is the net gain or loss of an investment over a specified time period, expressed as a percentage of the investment’s initial cost. When calculating the rate of return, you are determining the percentage change from the beginning of the period until the end.

f the cash flows are even you have the formula: Payback Period = Initial Investment / Net Cash Flow per period If the cash flows are uneven you have: Payback Period = Years before full recovery + Unrecovered cost at the start of the year / Cash flow during the year The ClearTax Payback Period Calculator calculates the ...

ARR = Average Annual Profit / Average InvestmentWhere: Average Annual Profit = Total profit over Investment Period / Number of Years.

The formula for Profitability Index is simple and it is calculated by dividing the present value of all the future cash flows of the project by the initial investment in the project. It can be further expanded as below, Profitability Index = (Net Present value + Initial investment) / Initial investment.

Present Value

How do you calculate PV?

1. The formula for PV looks like this:
2. PV = FV/(1+r)n.
3. The explanation for each element is:
4. PV = the present value in today's money FV = the projected future value of the money r = the expected rate of return, interest rate, or inflation rate.

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Jul 31, 2022

What is the formula for net present value?

1. NPV = Cash flow / (1 + i)^t – initial investment.
2. NPV = Today's value of the expected cash flows − Today's value of invested cash.
3. ROI = (Total benefits – total costs) / total costs.

How to do a NPV formula?

If the project only has one cash flow, you can use the following net present value formula to calculate NPV:

1. NPV = Cash flow / (1 + i)^t – initial investment.
2. NPV = Today's value of the expected cash flows − Today's value of invested cash.
3. ROI = (Total benefits – total costs) / total costs.