Project Evaluation

Question	Answer
Net present value	PV = C1/(1+r)^n
Future Value	FV = PV x (1+r)^n
time to break even	Imax /(tbe-timax)
average rate of return	Rmax/ (tmax - timax)
sales lifetime	trmax- timax
Phases of the LCA	1 - definition of goals and scope 2- Life cycle inventory 3- Life cycle impact assesment 4 - Interpretation
what does the LCIA require?	selection of impact categories, category indicators and characterisation models
cost of owners capitale	dividend per share/ share price x 100
cost of reserves	dividend per share/ share price x 100
cost of loan	interest rate x (100-tax rate)/100
cost of investment funds	x.owners capital + y.cost of reserves + z.cost of loan
rate of return on an investment	F=P(1+i)^N
what is oppurtunity cost?	the cost of NOT doing something with your cash
How do you tell if your proposed investment is a good one?	ROR > MARR
Annual average proceeds	return/duration
Return on investment	AAP/ Initial
What is the NVP of a reliable source?	0 PV(from investment)=PV(investment cost)
Internal Rate of Return	0 = P0 + P1/(1+IRR) + P2/(1+IRR)2 + P3/(1+IRR)3 + . . . +Pn/(1+IRR)n where P0, P1, . . . Pn equals the cash flows in periods 1, 2, . . . n, respectively
What is the MARR?	The lowest rate of return you would be willing to accept

Resource summary

	Created by kedy3gei over 11 years ago