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Nur Ilyana Bt Ismarau Tajuddin
                       P68499
ROI (Return of Investment)
 The money that we invest in the company and its
  return as profit or…
 its mean investment gains compare favorably to
  investment costs.
 (Return From Investment - Initial Cost of Investment)
  / Initial Cost of Investment.
 Example,If company invest rm 100,000 and end up
  receive of rm 120,000 (20,000 benefit).. The annual
  ROI will be 20% .
NVP (Net Present Value)
 is used to analyze an investment decision and give
  company management a clear way to tell if the
  investment will add value to the company.
 Formula : The present value of an
  investment expected cash inflows minus the
  initial investment.
 If the result show positive value, the investment
  should be made , otherwise it should not.
Payback Period
 The amount of time required to recover the cost of an
  investment.
 By other mean, which is the initial cash outflow of an
  investment is expected to be recovered from the cash
  inflows generated by the investment.
 Payback Period = Initial Investment / Annual
  Cash Inflows.
 Example, a $10000 investment which returned $1000
  per year would have a 10 years payback period

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Task 4 mit

  • 1. Nur Ilyana Bt Ismarau Tajuddin P68499
  • 2. ROI (Return of Investment)  The money that we invest in the company and its return as profit or…  its mean investment gains compare favorably to investment costs.  (Return From Investment - Initial Cost of Investment) / Initial Cost of Investment.  Example,If company invest rm 100,000 and end up receive of rm 120,000 (20,000 benefit).. The annual ROI will be 20% .
  • 3. NVP (Net Present Value)  is used to analyze an investment decision and give company management a clear way to tell if the investment will add value to the company.  Formula : The present value of an investment expected cash inflows minus the initial investment.  If the result show positive value, the investment should be made , otherwise it should not.
  • 4. Payback Period  The amount of time required to recover the cost of an investment.  By other mean, which is the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment.  Payback Period = Initial Investment / Annual Cash Inflows.  Example, a $10000 investment which returned $1000 per year would have a 10 years payback period