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An investment you expect a return, with the other, you don't.
They are one and the same and they are used interchangeably.
IRR is Investment Rate of Return, it simply gives a time period of single project of investment to be returned.Average IRR is considered by taking the average of all the previous IRRs and then concluding the answer as as an average of all the previous investments returned and in what time?
MEC is the expected rate of return on capital and MEI is the expected rate of return on investment.
return on capital = earnings before interest and tax / capital employed * 100
If the return on investments decreases, shareholders and investors will eventually sell their shares as their investment is not utilized efficiently and it will affect the company's over all value.
Definition of 'Return On Investment - ROI'A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula:
how does one smooth stone deliver return on investments to its clients
return is calculate against investment. profit is calculte against cost.
The difference between the coupon rate and the required return of a bond is dependent upon the type of bond. Junk bonds will have the biggest difference between its return and the coupon rate.
The effect that low interest rates have on business investments is a low return. The low return will affect the profits of a business. It will also slow down business investments.
The difference between the amount of money received from selling an investment and the amount of money spent to purchase the investment is known as the capital gain or loss. When the capital gain or loss is then compared to the initial investment (through division), the result is the capital gains yield or return on investment (assuming there are no cash flows such as coupon payments or dividends).