Financial Analysis of Investment Alternatives |
Common terms and phrases
12-year period Alternative A Alternative amount owed analysis annual capital cost annual cost approach annual cost method annual interest rate annual operating costs annual rate annual revenues asset asso assume begin calculated capital recovery factor choice of alternative compound amount factor compound interest factor computed considered cost comparison costs and revenues described determination earned interest economical alternative equal time periods equal to P(1 estimated evaluating extra investment firm firm's five percent four percent future sum income tax initial investment interest charge interest periods investment alternatives irreducible factors ment negative costs old equipment opportunity cost payment compound amount present sum present value present worth approach present worth factor present worth method rate of return result return method return requirement selected series present worth single payment compound sum of money SUMMARY tax expense tive total annual cost total investment total present worth trial-and-error method uniform annual cost uniform annual equivalent