https://padlet.com/carolinajolson/methodininvestment en-us 2021-01-07 02:22:49 UTC 2025-10-14 08:58:58 UTC hello@padlet.com carolinajolson https://padlet.com/carolinajolson/methodininvestment/wish/1061771021 Present worth is an equivalence method of analysis in which a project’s cash flow inflows and outflows are discounted to a single present value. It is likely the most efficient analysis method that we can use for on an economic basis to evaluate single project acceptability. The Minimum Attractive Rate of Return (MARR) also known as hurdle rate is an interest rate established for the evaluation and selection of present worth. The project is acceptable if the present worth is greater than or equal to zero.]]> 2021-01-07 02:59:02 UTC https://padlet.com/carolinajolson/methodininvestment/wish/1061771021 carolinajolson https://padlet.com/carolinajolson/methodininvestment/wish/1061876578 The objective in all time value of money methods is to maximize future wealth, and therefore, the future worth (FW) is very useful in single project investment decision situations. The future worth (FW) is just like the present worth (PW), except that it's referenced to a future point in time. Whereas PW is referenced to the beginning of the cash-flow stream, FW is typically referenced to the end year, n, at an interest rate that is typically the Minimum Attractive Rate of Return (MARR). If FW (i) > 0, accept the investment. ]]> 2021-01-07 04:10:43 UTC https://padlet.com/carolinajolson/methodininvestment/wish/1061876578 carolinajolson https://padlet.com/carolinajolson/methodininvestment/wish/1061957649 The Internal Rate of Return (IRR) of a project considers what discount rate will be needed to produce the net present value (NPV) of 0. IRR is a method that commonly used in construction project to forecast the potential of a single project's viability. The information of IRR can be used to determine the client required rate of return that will accept in order to move forward with the investment. The single project is approved when the IRR is higher than a pre-set percentage aim. The project also can be rejected if the IRR is less than the aim. ]]> 2021-01-07 04:58:24 UTC https://padlet.com/carolinajolson/methodininvestment/wish/1061957649