Return on Investment Calculator Details

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This calculator computes the economic return from an investment. The return on investment is assessed using the following criteria:

Net Present Value (NPV)

-if positive indicates that the required rate of return in achieved over the project lifetime.

Internal Rate of Return (IRR)

-actual rate of return

Payback Period (PP)

-number of years before investment cost is recuperated

The formula for these quantities is given by:

where

I:	Capital Investment
Q:	Annual net return
n:	Project lifetime
k:	Minimum attractive rate of return
S:	Salvage value

Last modified: Thu Dec 06 15:14:05 New Zealand Daylight Time 2007