How can I calculate the expected return on an investment?

How can I calculate the expected return on an investment?
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To calculate the return on an investment you will fist write down the amount of your total investment including fees and any expenses. Next, write down your loss and finally calculate the return on investment by dividing the profit by total investment. www.moneychimp.com offers a compound interest calculator for your convenience.
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'Marginal efficiency of capital' is - (1) expected rate of return on new investment (2) expected rate of return of existing investment (3) difference between rate of profit and rate of interest (4) value of output per unit of capital invested

Description : 'Marginal efficiency of capital' is - (1) expected rate of return on new investment (2) expected rate of return of existing investment (3) difference between rate of profit and rate of interest (4) value of output per unit of capital invested

Last Answer : (1) expected rate of return on new investment Explanation: The volume of investment depend upon the following two factors: (1) rate of interest: and (2) marginal efficiency of capital. Before ... partly on expectations of future yields and partly on the actual price of the capital good concerned.

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Description : A marketer is most likely to set prices according to a cash -flow objective when a A)trial -and -error approach to the market is acceptable. B)certain market share must be maintained. C)quick return on investment is desired. D)product is expected to have a long life cycle.

Last Answer : C)quick return on investment is desired.

‘Marginal efficiency of capital’ is (1) expected rate of return on new investment (2) expected rate of return of existing investment (3) difference between rate of profit and rate of interest (4) value of output per unit of capital invested

Description : ‘Marginal efficiency of capital’ is (1) expected rate of return on new investment (2) expected rate of return of existing investment (3) difference between rate of profit and rate of interest (4) value of output per unit of capital invested

Last Answer :  expected rate of return on new investment

What is the average domestic investment in the year 2014? (You are not expected to calculate the exact value? a) Rs.2814.28 Crore b) Rs.2519.75 Crore c) Rs.2234.82 Crore d) Rs.3151.51 Crore e) Rs.3329.79 Crore

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Last Answer : a) Rs.2814.28 Crore

How can I calculate return on an investment?

Description : How can I calculate return on an investment?

Last Answer : You can calculate your return on investment by dividing your return by the initial amount invested. This will represent your gross return over a period of time.

Maintain 850 OC for 1 hour (soaking time).  Cool the material to 60 OC in 4 hours. a) Calculate the efficiency of the furnace, if the specific heat of steel is 0.12 kcal/kgOC and fuel oil consumption per batch is 1400 litres.  GCV of fuel oil - 10200 kcal/kg,  Cost of fuel oil - Rs. 46,000/kL,  Sp. gr. of fuel oil - 0.92. b) Due to high cost of oil, the plant management decides to convert to a lower operating cost LPG fired furnace lined on the inside with ceramic fibre insulation and with an operating efficiency of 80%, for same requirement. The investment towards installation of the new furnace is Rs. 50 lakhs. Calculate the Return on Investment, if the plant operates two batches per day and 250 days in a year.  Cost of LPG - Rs. 75/kg,  GCV of LPG - 12500 kcal/kg.

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Last Answer : b. An opportunity that must be explored

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Last Answer : answer:My kids are all grown and are employed. One is living at home to pay off her education faster. Each of them are far more together than I ever was. When I was living at home they provided almost everything (food and shelter free of charge).

If the beta of a stock is 1.8 and the overall market declines 20%, the expected return is: A. -36% B. -18%. C. -20%. D.

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Last Answer :  A. -36%

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Last Answer : B. Opportunity cost to the firm

A measure of risk per unit of expected return A.standard deviation B . Coefficient of variation C.Correlation coefficient D. Beta

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Last Answer : Answer: B 

Calculate the bearing life if expected life for 90% bearings is 9000 hr and the shaft is rotating at 1500 rpm. (a) 850 million rev (b) 810 million rev (c) 810 hr (d) 850 hr

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Last Answer : B. it is cash, not accounting income, that is central to the firm's capital budgeting decision

5. Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return? -Economics 10th

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Last Answer : Answer: It is a superior measure compared to the cash flow generated per share

The profit of a company (whose capital is divided into 25‚000 shares of Rs. 10 each) for the last three years are : Rs. 50‚000; Rs. 60‚000 and Rs. 40‚000. The fair return on investment is taken at 10% p.a. The value of company’s share will be– (A) Rs. 10 (B) Rs. 20 (C) Rs. 30 (D) Rs. 40

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Last Answer : Answer: Rs. 20

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Description : The internal rate of return - (1) must be less than the interest rate if the firm is to in-vest. (2) makes the present value of profits equal to the present value of costs. (3) falls as the annual yield of an investment rises. (4) is equal to the market interest rate for all the firm's in-vestment.

Last Answer : (3) falls as the annual yield of an investment rises. Explanation: The internal rate of return on an investment or project is the "annualized effective compounded re-turn rate" or discount rate ... the investment equals the net present value of the benefits (positive cash flows) of the investment.

Project Manager must ensure that it develops appropriate trade off/s as A. Time, cost and performance B. Time, value and performance C.Men, Materials and Machines D.Money, Cost and Return on Investment

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Last Answer : A. Time, cost and performance

Suppose an investment of $100 has grown to $110 in one year. What is the return on investment? (A) 0.1% (B) 1.0% (C) 10% (D) none of these

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Last Answer : (C) 10%

The return available by investing the capital elsewhere is known as (A) profit rate (B) discount rate (C) opportunity cost (D) return on investment

Description : The return available by investing the capital elsewhere is known as (A) profit rate (B) discount rate (C) opportunity cost (D) return on investment

Last Answer : (C) opportunity cost

Consider these two investment strategies: Strategy is the dominant strategy because . A. 1, it is riskless B. 1, it has the highest reward/risk ratio C. 2, its return is at least equal to Strategy 1 and sometimes greater D. 2, it has the highest reward/risk ratio E. both strategies are equally preferred

Description : Consider these two investment strategies: Strategy is the dominant strategy because . A. 1, it is riskless B. 1, it has the highest reward/risk ratio C. 2, its return is at least equal ... sometimes greater D. 2, it has the highest reward/risk ratio E. both strategies are equally preferred

Last Answer : C. 2, its return is at least equal to Strategy 1 and sometimes greater

Which of the following might be considered a "red flag" indicating possible fraud in a large manufacturing company with several subsidiaries? a. A consistent record of above average return on investment for all subsidiaries b. The existence of a financial subsidiary c. Use of separate bank accounts for payrolls by each subsidiary d. Complex sales-transactions and transfers of funds between affiliated companies

Description : Which of the following might be considered a "red flag" indicating possible fraud in a large manufacturing company with several subsidiaries? a. A consistent record of above average ... payrolls by each subsidiary d. Complex sales-transactions and transfers of funds between affiliated companies

Last Answer : Complex sales-transactions and transfers of funds between affiliated companies

What is the marketing objective of non-business organizations ? 1. To provide an idea or service to the public 2. To obtain a desired response from a target market or public 3. To obtain a return on social investment 4. To determine the target market and to create and maintain a satisfying marketing mix 5. none of these

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Last Answer : To obtain a desired response from a target market or public

what does the term keyword prominence refer to?A. It refers to the importance attached to getting the right keyword density.  B.It refers to the fact that the keywords in bold font are given priority by the search engines.  C.It refers to the fact that the importance of choosing high traffic keywords leads to the best return on investment.  D.It refers to the fact that the keywords placed in important parts of a webpage are given priority by the search engines

Description : what does the term keyword prominence refer to? A. It refers to the importance attached to getting the right keyword density.  B.It refers to the fact that the keywords in bold font are ... fact that the keywords placed in important parts of a webpage are given priority by the search engines

Last Answer : D.It refers to the fact that the keywords placed in important parts of a webpage are given priority by the search engines

The correct abbreviation of ROI is __________. a. Risk on investment b. Return on income c. Risk on income d. Return on investment

Description : The correct abbreviation of ROI is __________. a. Risk on investment b. Return on income c. Risk on income d. Return on investment

Last Answer : d. Return on investment

ROI stands for? A. return on income B. risk on investment C. result on investment D. return on investment

Description : ROI stands for? A. return on income B. risk on investment C. result on investment D. return on investment

Last Answer : D. return on investment

Single-word or general keywords are ______ A. too broad and can lead to clicks from people who don't know what you're offering B. excellent for your return on investment C. useful in generating highly targeted traffic for your site D. good for preventing irrelevant traffic

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Last Answer : A. too broad and can lead to clicks from people who don't know what you're offering

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Description : Hofstede found that some countries have a long-term orientation while others focus on the short term. His results mean that: A. US business would be happy to invest in nuclear power and space ... from ten-year investment projects. D. Indian business is impatient for a return on its investments.

Last Answer : British businesses prefer investments with a quick return.

The payback method for the measurement of return on investment (A) Gives a correct picture of profitability (B) Underemphasises liquidity (C) Does not measure the discounted rate of return (D) Takes into account the cash inflows after the recovery of investments

Description : The payback method for the measurement of return on investment (A) Gives a correct picture of profitability (B) Underemphasises liquidity (C) Does not measure the discounted rate of return (D) Takes into account the cash inflows after the recovery of investments

Last Answer : (C) Does not measure the discounted rate of return

The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is (A) 15% (B) 10% (C) 1.5% (D) 150%

Description : The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is (A) 15% (B) 10% (C) 1.5% (D) 150%

Last Answer : (C) 1.5%

_________ method for profitability evaluation of a project does not account for investment cost due to land. (A) Net present worth (B) Pay out period (C) Discounted cash flow (D) Rate of return on investment

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Last Answer : (B) Pay out period

With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project (A) Decreases (B) Increases (C) Increases linearly (D) Remain constant

Description : With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project (A) Decreases (B) Increases (C) Increases linearly (D) Remain constant

Last Answer : (A) Decreases

Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant? (A) Cash reserve (B) Rate of return on investment (C) Payout period (D) Discounted cash flow based on full life performance

Description : Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant? (A) Cash reserve (B) Rate of return on investment (C) Payout period (D) Discounted cash flow based on full life performance

Last Answer : (A) Cash reserve

Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed (b) A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control. (c) Centres having the responsibility of generating and maximising profits (d) Centres concerned with earning an adequate return on investment

Description : Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or  expressed (b) A location, person or an item ... the responsibility of generating and maximising profits (d) Centres concerned with earning an adequate return on investment

Last Answer : Unit of quantity of product, service or time in relation to which costs may be ascertained or  expressed

A profit centre is a centre (a) Where the manager has the responsibility of generating and maximising profits (b) Which is concerned with earning an adequate Return on Investment (c) Both of the above (d) Which manages cost

Description : A profit centre is a centre (a) Where the manager has the responsibility of generating and maximising profits (b) Which is concerned with earning an adequate Return on Investment (c) Both of the above (d) Which manages cost

Last Answer : (a) Where the manager has the responsibility of generating and maximising profits

Explain the following a) Dry Bulb Temperature and Wet bulb Temperature b) Maximum Demand and Power Factor c) Gross Calorific Value & Net Calorific Value d) 5S & Return of Investment (ROI) e) CUSUM

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Last Answer : d) none of the above

The retrofitting of a variable speed drive in a plant costis Rs 0.5 lakh. The maintenance cost is Rs. 5,000/year. The return on investment is a) 25% b) 22.5% c) 24% d) 27.5%s Rs 2 lakh. The annual savings

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Last Answer : b) 22.5%

Typical parameters used in quantitative methods to estimate discount for lack of marketability include ____________. a) duration of the restriction and risk of the investment b) return of the investment c) dividends paid

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Last Answer : a) duration of the restriction and risk of the investment

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Description : The rate of ……………. Is always an important factor for management especially in relation to the rate of return A) Cost B) Benefit C) Sales D) Investment

Last Answer : D) Investment

Which of the following is not included in the assumption on which Myron Gorden proposed a model on Stock valuation A. Retained earning the only source of financing B. Finite Life of the firm C. Taxes do not exist D. Constant rate of return on firms investment.

Description : Which of the following is not included in the assumption on which Myron Gorden proposed a model on Stock valuation A. Retained earning the only source of financing B. Finite Life of the firm C. Taxes do not exist D. Constant rate of return on firms investment.

Last Answer : B. Finite Life of the firm

ROI stands for? A. Return on Investment B. Ratio of Investment C. Return of Income D. None of these

Description : ROI stands for? A. Return on Investment B. Ratio of Investment C. Return of Income D. None of these

Last Answer : A. Return on Investment

The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

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Last Answer : A. Net profit before interest, tax and dividend / Capital employed

In the calculation of return on shareholders investments the referred investment deals with A. All reserves B. Preference and equity capital only C. All appropriations D. All of the above

Description : In the calculation of return on shareholders investments the referred investment deals with A. All reserves B. Preference and equity capital only C. All appropriations D. All of the above

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Discounted cash flow criteria for investment appraisal does not include A. Not present value B. Benefit cost ratio C. Accounting rate of return D. Internal rate of return

Description : Discounted cash flow criteria for investment appraisal does not include A. Not present value B. Benefit cost ratio C. Accounting rate of return D. Internal rate of return

Last Answer : B. Benefit cost ratio