|Discounted payback period rule|
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Definition of Discounted payback period rule
Discounted payback period rule
An investment decision rule in which the cash flows are discounted at an
The requirement that all pool information, as specified under the PSA Uniform Practices, in a
The period of time for which financial statements are produced – see also financial year.
IRS rules used to allocate income on export sales to a foreign sales corporation.
The annual rate of return that when compounded t times, would have
The time between each payment under an annuity.
Legislation under which interest, dividends, or capital gains earned on assets you transfer to your spouse will be treated as your own for tax purposes. Interest or dividends relating to property transferred to children under 18 also will be attributed back to you. The exception to this rule is that capital gains relating to property transferred to children under 18 will not be attributed back to you.
The average useful life of a company's collective amortizable asset base.
Average number of days necessary to receive cash for the sale of
The ratio of accounts receivables to sales, or the total
Accept the project if IRR is greater than the discount rate; reject the project is lower than the
The length of the time period (for example, a quarter in the case of quarterly
the time between each interest computation
The length of time for which the customer is granted credit.
Times in a company's history when growth is essential and without which survival of the business might be in jeopardy.
The period during which a customer can deduct the discount from the net amount of the bill
Selling something on a discounted basis is selling below what its value will be at maturity,
Discounted cash flow
A technique that determines the present value of future cash
Discounted Cash Flow
Techniques for establishing the relative worth of a future investment by discounting (at a required rate of return) the expected net cash flows from the project.
Discounted cash flow (DCF)
Future cash flows multiplied by discount factors to obtain present values.
Discounted cash flow (DCF)
A method of investment appraisal that discounts future cash flows to present value using a discount rate, which is the risk-adjusted cost of capital.
discounted cash flow (DCF)
Refers to a capital investment analysis technique
Discounted dividend model (DDM)
A formula to estimate the intrinsic value of a firm by figuring the
The time interval over which a money manager's performance is evaluated.
Extended Amortization Period
An amortization period that continues beyond a long-lived asset's economic useful life.
Extended Amortization Periods
Amortizing capitalized expenditures over estimated useful lives that are unduly optimistic.
Full Credit Period
The period of trade credit given by a supplier to its customer.
A specific period of time after a premium payment is due during which the policy owner may make a payment, and during which, the protection of the policy continues. The grace period usually ends in 30 days.
Length of time during which repayments of loan principal are excused. Usually occurs at the start of the loan period.
Length of time that an individual holds a security.
Holding period return
The rate of return over a given period.
Proposal that the money supply be increased at a steady rate equal approximately to the real rate of growth of the economy. Contrast with discretionary policy.
A portfolio strategy in which a portfolio is created that will be capable of
A technical trading strategy that combines mechanical rules, such as the CRISMA
The period of time between the end of the discount period and the date payment is due.
Net present value rule
An investment is worth making if it has a positive NPV. Projects with negative NPVs
In the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not
Odd first or last period
Fixed-income securities may be purchased on dates
The length of time it takes to recover the initial cost of a project, without regard to the time value of money.
A method of investment appraisal that calculates the number of years taken for the cash flows from an investment to cover the initial capital outlay.
The length of time required for the net revenues of an investment for the net revenues of an investment to return the cost of the investment.
A capital budgeting analysis method that calculates the amount of
The number of years necessary for the net cash flows of an
the time it takes an investor to recoup an
Time until cash flows recover the initial investment of the project.
cost other than one associated with making or acquiring inventory
The costs that relate to a period of time.
a pay plan based on the time spent on the task rather than the work accomplished
A physical inventory count taken on a repetitive basis.
Periodic inventory system
An inventory system in which the balance in the Inventory account is adjusted for the units sold only at the end of the period.
A formula for determining policy. Contrast with discretionary policy.
PPF (periodic perpetuity factor)
a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity.
The time period for which transactions are compiled into a set of financial statements.
See monetarist rule.
SEC rule allowing qualified institutional buyers to buy and trade unregistered securities.
rule enacted in 1982 that permits firms to file shelf registration statements.
Rule of 72
This is a very important rule to know. The rule is that the number 72 divided by the rate of return of your investment equals the number of years it takes for your investment to double.
Argument about whether policy authorities should be allowed to undertake discretionary policy action as they see fit or should be replaced by robots programmed to set policy by following specific formulas. See discretionary policy, policy rule.
The return of a portfolio over a shorter period of time than the evaluation period.
T-period holding-period return
The percentage return over the T-year period an investment lasts.
SEC-imposed restrictions on when a short sale may be executed, intended to prevent investors
Specifies the permitted minimum or maximum quantity of securities that can be delivered to
Time during which the SEC studies a firm's registration statement. During this time the firm
Waiting Period (Credit Insurance)
A specific time that must pass following the onset of a covered disability before any benefits will be paid under a creditor disability policy. (Also known as an elimination period).
Realignment period of a temporary misaligned yield relationship that sometimes occurs in
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