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Topic: Rate of return on investment


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  NCEDR Tools - Other Tools - Cost-Benefit Analysis Modules
The discount rate is the rate by which benefits that accrue in some future time period must be adjusted so that they can be compared with values in the present.
In principle, this rate is the rate that equilibrates the demand for savings by investors and the supply of savings from savers who refrain from spending all of their income on current consumption.
Choosing the correct rate for a cost-benefit analysis is important because society wishes, in principle, to undertake a mix of public and private investments that maximize social well-being.
www.ncedr.org /tools/othertools/costbenefit/module4.htm   (1686 words)

  
 Investment Returns - Financial Calculators from Dinkytown.net   (Site not responding. Last check: 2007-10-10)
The actual rate of return is largely dependant on the type of investments you select.
From January 1970 to December 2005, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year.
It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility.
www.dinkytown.net /java/InvestmentReturn.html   (679 words)

  
 [No title]
Holding period returns are generally used for periods of a year or less because it does not accurately incorporate the time value of money -which becomes more important for periods in excess of one year.
When comparing returns from alternative investments it is important to use the same holding period because of the importance of the timing of cash flows produced by alternative investment s and the time value of money.
The required rate of return of an investment is the rate that compensates the investor for its risk.
garnet.acns.fsu.edu /~jclark/invest/answers/gj4ans.doc   (2095 words)

  
 Small Farm Success Project   (Site not responding. Last check: 2007-10-10)
Rate of return on equity is another important measure of your farm's profitability.
Unlike the return on equity, which only looks at the owner's share of the business, the rate of return on investment indicates the return on the entire farm investment, including the debt-financed portion.
In Case #2, the rate of return on investment is equal to the interest rate paid, so the rate of return on investment equals the rate of return on equity on both farms.
www.smallfarmsuccess.info /FactSheet_539.cfm   (2625 words)

  
 Calculating the Rate of Return on Investments   (Site not responding. Last check: 2007-10-10)
Whereas, the geometric or compound rate of return is a better yardstick to measure your investment over the long run.
The arithmetic mean or average return should be used to calculate return on investment only in the short-term.
As shown in the above example, the arithmetic return of the investment is 25%, even though the value of the investment is the same as it was two years ago.
library.thinkquest.org /3096/42analy2.htm   (337 words)

  
 Borrow more money for a greater investment return - FAQ
If the investment does well, any income that is greater than the operating expenses and mortgage payments is allocated only to the equity investor and is not shared by the mortgage lenders.
With a loan-to-value ratio of 90% your return on equity declines to -4.25%, OUCH...
In all cases, the greater the interest rate associated with borrowing, the lower the rate of return.
www.homeresearcher.com /search/articles/borrow-more.shtml   (533 words)

  
 Return on Investment
The term return on investment, or simply return, is used to refer to any of a number of metrics of the change in an asset's or portfolio's accumulated value over some period of time.
This may also be called an annual rate of return or simply a rate of return.
In this context, return is no longer a metric of change in accumulated value, but a metric of change in any time series.
www.riskglossary.com /articles/return.htm   (578 words)

  
 Return on Investment and Required Rate of Return
Typically, returns are calculated on an annual basis and referred to as annual rate of return.
Returns are the average annual total (income and capital appreciation) arithmetic mean for 1926 to 2000 in the United States.
The lowest rate of return was U.S. Treasury bills at 3.9 percent annually and the highest was Micro-Cap stock at 18.4 percent annually.
www.vercoradvisor.com /articles/basic.html   (691 words)

  
 Rates of Return to Advanced Education in Alberta
I calculate the rates of return on various types of educational investments and compare those rates of return to the interest rates that one can obtain on secure financial instruments.
If the rate of return on a particular level of education is greater than 4.25 percent, then I consider that level of education to be a worthwhile investment for the individual.
Turning to the rates of return, I found that overall, the highest return on investment (that is the highest benefits relative to the costs) results from university education.
www.economica.ca /ew44p3.htm   (1125 words)

  
 AICPA Investment Outlook   (Site not responding. Last check: 2007-10-10)
Acknowledging the need for consistency in reporting investment returns separate from investors actions, the investment community uses a standard performance measurethe time-weighted returnwhich essentially is a calculation of the investment return generated by a manager over specific time periods that are geometrically linked or compounded.
Intuitively, this return might be thought of as a weighted average of achieving a 25% return (earning $25 on $100 invested) for one-third of the period under analysis and a 20% return (earning $25 on $125 invested) for two-thirds of the period.
A modest investment that has performed quite well over the past several years may experience a disastrous run immediately after a large additional investment, leaving a client with a very real aggregate economic loss and a biased perception of the managers performance.
www.aicpa.org /PUBS/jofa/feb98/invest.htm   (1190 words)

  
 Personal Rates of Return: Detailed Explanation of Calculation (Russell.com)
The personal rate of return found in your statement is a time-weighted rate of return that uses your portfolio's daily market values whenever a cash flow occurs.
Thus, the rate of return for the sample one-month period is 0.48%.
Annualized returns express the rate of return of a portfolio over a given time period on an annual basis, or a return per year.
www.russell.com /ca/Investor_Services/Personal_Rate_of_Return.asp   (692 words)

  
 Ira M. Freed, CPA - Return on Investment Analysis
The basic method of this investment analysis is to compute the cash flows at the beginning of the investment, during the period that the investment is held, and at the end of the investment (when it is disposed of).
The key assumption in rate of return models is the annual rate of appreciation of the property.
This rate is the annual percentage increase in the value of the investment necessary to raise the value of the property to what the investor thinks (or hopes) the property will be worth after a certain number of years.
www.irafreed.com /roi_analysis.html   (731 words)

  
 Rate of return - Wikipedia, the free encyclopedia
ROI is the return on a past or current investment, or the estimated return on a future investment.
In financial economics, the term yield indicates a rate of return that is based on compounding, reinvestment, and/or the changing market value of a security.
But when percentage returns on investments are calculated, they are calculated for a period of time – not based on original investment dollars, but based on the dollars in the investment at the beginning and end of the period.
en.wikipedia.org /wiki/Return_on_investment   (3153 words)

  
 The Value of a College Degree. ERIC Digest.
In order to determine whether higher education is worth the investment, it is useful to examine what is known about the value of higher education and the rates of return on investment to both the individual and to society.
There is considerable support for the notion that the rate of return on investment in higher education is high enough to warrant the financial burden associated with pursuing a college degree.
While it is clear that investment in a college degree, especially for those students in the lowest income brackets, is a financial burden, the long-term benefits to individuals as well as to society at large, appear to far outweigh the costs.
www.ericdigests.org /2003-3/value.htm   (1125 words)

  
 Print: The Chronicle: Daily news: 10/30/2002 -- 04   (Site not responding. Last check: 2007-10-10)
Among 10 of the world's most industrialized countries, the relative rewards of higher education are greatest in Britain, which gives students a 17-percent rate of return on their investment, according to a new report from the Organization for Economic Cooperation and Development.
The rate of return was calculated by weighing the benefits, such as earnings, against costs, such as tuition fees.
In analyzing participation rates in higher education from 1995 to 2000, the report found the fastest growth in Poland and Hungary, with enrollments in those countries soaring by 108 percent and 80 percent, respectively.
www.nyu.edu /classes/jepsen/chronicleOct3002.html   (497 words)

  
 Investment in the Intellectual Property Driven Firm and Required Rates of Return   (Site not responding. Last check: 2007-10-10)
Starting from fundamentals, the return that an angel investor would like from an investment in IP is very different than that sought by a large public company.
This typically features a greater focus on financial structuring and engineering, with the return on investment dependent on the stability of the firm’s cash flows, the performance of the capital markets, or the ability to leverage a trade and simply write down the debt portion to increase the value of the investment in the firm.
Accordingly, the required rate of return on the IP/IA in the firm may not be linked to the actual return that the private equity/leveraged buyout investor requires.
www.wipo.int /sme/en/documents/investment_ip.htm   (898 words)

  
 WebQuiz Writer Practice Exam
The demand for investment is related to the rate of return on that investment.
If an investment yields high rate of return then firms will be more likely to undertake that investment.
Recall that the investment schedule is drawn against the rate of interest hence a rise in the interest rate is illustrated with a movement up and along the investment schedule.
www.uwm.edu /People/amurshid/principles/p_quiz6.html   (1761 words)

  
 Spreadsheets   (Site not responding. Last check: 2007-10-10)
It estimates the returns on these expenses and calculates the rate of return on the discounted total costs for a 10 year period.
This spreadsheet was designed to calculate returns on investments in northern nut tree plantations.
This spreadsheet compares costs and returns for putting land under conservation restriction (and taking the tax deduction) with costs and returns from development.
www.daviesand.com /Papers/Memos/Spreadsheets/index.html   (388 words)

  
 Investment vs. Return   (Site not responding. Last check: 2007-10-10)
Returns of 10% to 15% per year on invested capital are normally considered to be very good.
In most cases, the return (expressed as a percentage of the total investment) is usually smaller on high investment franchise opportunities than on low investment opportunities.
As a general rule of thumb, you should never invest in a franchise unless you believe (based on your own investigation) that the average annual income return from the business will be equal to at least 30-50% per year of the total initial investment for the franchise unit.
www.franchiseils.com /articles/investmentvsreturn.aspx   (699 words)

  
 Chapter 6 - Investment decisions - Capital budgeting
This rate means that the present value of the cash inflows for the project would equal the present value of its outflows.
The ARR method (also called the return on capital employed (ROCE) or the return on investment (ROI) method) of appraising a capital project is to estimate the accounting rate of return that the project should yield.
The required rate of 40% is a money rate of return (sometimes known as a nominal rate of return).
www.fao.org /docrep/W4343E/w4343e07.htm   (3697 words)

  
 return on investment tool by justsell.com
Evaluating the “return on investment” for a prospect (or customer) makes it easier for him or her to justify spending money on your product or service and helps the prospect visualize the value the purchase or investment will create.
return on investment is defined as the amount of money one can expect to receive as the result of making an investment...
The annual return on your investment is ##%.
www.justsell.com /salestools/returnoninvestment.aspx   (494 words)

  
 CCH Business Owner's Toolkit | Return on their investment
The rate of return on investment (profit divided by investments) is probably the most common measure of profitability for the small business owner.
Make sure to clearly specify what items from the financial statements are being used in determining "profit" and "investment" For example, "profit" might be considered to mean net operating profit, net profit before taxes, or net profit after taxes.
"Investment" could mean total assets employed or equity alone.
www.toolkit.cch.com /pops/P99_10_2300_01.asp   (150 words)

  
 Insulation Investment Calculator
If so, you were interested in the rate of return on your investment.
It's return is in consistently lower utility bills to heat and cool your house.
Don't be surprised at a fairly large rate of return, especially if your house is poorly insulated, you live in a severe climate, have an inefficient heating or cooling unit, or expensive fuel.
chuck-wright.com /calculators/insulpb.html   (323 words)

  
 Return on Investment, Time Value of Cash Flows
Calculate rate of return, discount rate, return on investment, payback period, net present value, internal rate of return, time value of investment cash flows.
FREE GIVEAWAY Quick Guide to Investment Calculations gives you all the key formula and equations for the time value of cash flows, using net present values and internal rate of return, ROIC and discounted pay back, plus lots more.
Portfolio rate of return and annualized rate of return using 365/360 day options.
www.exceltemplates.com /store/screens/investment_calc/index.php   (424 words)

  
 EPF interest rate to depend on returns: Verma
The government will decide the interest rate on the country's largest pension fund scheme based on the rate of return on investments in the next financial year, Labour Minister Sahib Singh Verma said on Tuesday.
In the next year, it will be based on the rate of return on our investment.
The Employees Provident Fund is governed by a board of trustees headed by the labour minister which decides on the interest rate at the beginning of each financial year.
www.rediff.com /money/2003/mar/04pf.htm   (311 words)

  
 The Exchange Rate and the Rate of Return on an Investment in a Foreign Country   (Site not responding. Last check: 2007-10-10)
The Exchange Rate and the Rate of Return on an Investment in a Foreign Country
be the exchange rate in the indirect form (units of foreign currency per dollar).
The expression within the brackets is what Mishkin's text uses for the rate of return on a foreign investment.
www2.sjsu.edu /faculty/watkins/forex.htm   (190 words)

  
 Conversion Track, rol log analyzer, website track conversion rate and return on investment
Conversion rate is the percentage of visitors who complete a desired action.
This is startling because the conversion rate is a measure of a site's ability to persuade visitors to take a desired action, one its managers or owners want them to take.
While PPC search engines allow you to easily monitor the click-through rate for your keywords, this alone is not good enough to evaluate the quality of the traffic you are receiving.
www.bestshareware.net /conversiontrack.htm   (1017 words)

  
 [No title]
ã44z‰ý•ÿÿddìÿÿ(1î1üá4z‰ÿÿÿÿ­À ÿÿÏÁ (ýÿÿÿùÿÿ-÷ÿÿ]güÿÿ÷ýÿÿÿ‰½ 8ÿÿÿ00®ÿÿï¯Ìÿÿ¿ÍúÿÿObject8ºÿÿEquationºÿÿ Equation.2ºÿÿ-Microsoft Equation 2.0Äèÿÿ@ Ç ÿÿÿÿºÿÿ À ÿÿ~Á (ýÿÿÿùÿÿþÿÿ†¾rýÿÿÿ‰½ 8ÿÿÿ00¡ÿÿî :Ñ'PÜb¢ÿÿ¾£$QPPþÿÿ£„Uµ×XþÿÿXàÿÿNîZ5ri is return for outcome i r is the average or expected return n is the number of outcomesìÿÿ”/î„/⌄‰b⌄‰bçÿÿÿX⌄‰bìÿÿè0îØ0ã4Œ„‰ý•ÿÿdd$ã4Œ„‰ý•ÿÿddã4Œ„‰ý•ÿÿddìÿÿ(1î1Zጄ‰ÿÿÿÿ­îÿÿØ ï€íÀôÿÿ÷ÿÿ@ pÝb÷ ÙÿÿHÚºÿÿ.ºÿÿ/ºÿÿ0ôÿÿ4xï$ÿÿÿ———̙33ÌÌÌÿ²²²À ÿÿ€Á (ýÿÿÿÀôÿÿ÷ÿÿ@ pýÿÿÿ‹½ 8ÿ‹ÿ00Ýb¸ ÿÿ@ À ÿÿ~Á (ýÿÿÿ&÷ÿÿÆùÿÿ] Jýÿÿÿ½ 8ÿÿÿ00Üb¡ÿÿî :Ñ'PÜb¢ÿÿ¾£$Qúÿÿ`÷ÿÿãùÿÿ# -µ×h÷ÿÿ˜úÿÿàÿÿNî25The standard deviation of returns on an investment is a measure of absolute risk because it is not measured against return.
An alternative measure of the risk on an investment is the coefficienct of variation, which measures an investment’s dispersion of returns relative to average or expected return.ìÿÿœ/îŒ/âHŒ‰bâHŒ‰b-âHŒ‰b âHŒ‰bjâHŒ‰bâHŒ‰b7âHŒ‰bâHŒ‰bâHŒ‰bìÿÿ0îø04ã4HŒ‰ý•ÿÿdd1ã4HŒ‰ý•ÿÿddã4HŒ‰ý•ÿÿddã4HŒ‰ý•ÿÿdd
The required (expected) rate of return on an investment has been shown to be:ìÿÿ
garnet.acns.fsu.edu /~jclark/invest/slides/GJChp4.ppt   (117 words)

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