Average income as a percentage of average investment

A) Capital investment analysis
B) Time value of money concept
C) Net present value method
D) Average rate of return
E) Cash payback period

Capital Investment Analysis

The process of evaluating and comparing potential investments or expenditures to determine their profitability and financial impact on the business.

Net Present Value Method

A method of evaluating the feasibility of projects or investments by calculating their net present value using a discount rate.

Average Rate of Return

A financial ratio that measures the profitability of an investment by dividing the average annual profit by the initial investment cost.