Rate of return represents the percentage net gain or loss of an investment's initial cost over a period of time. The rate of return calculates the percentage change from the beginning to the end of a ...

Decisions regarding investing in long-term capital assets or projects are important to small businesses. Capital assets are those that generate income for a business. The accounting rate of return is ...

The internal rate of return, or IRR, allows investors to analyze the profitability of investments and companies to analyze the profitability of capital outlays. The easiest way to understand IRR is by ...

Time-weighted return (TWR) calculates an investment portfolio or fund’s performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

Every day, business managers make capital budget decisions -- choices about whether to invest in projects such as building a factory, upgrading machinery or investing in research and development. But ...

It’s easy to stick money in your retirement fund and forget about it. But that doesn’t mean you should! As important as consistent saving is understanding your rate of return on investment (ROI). If ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

The pricing of an income annuity is typically described using either the monthly income amount it generates, or as the annual payout rate of the income received as a percentage of the premium amount.