Calculations and Formulae

1) Add revenue in years 2) Take off costs 3) Divide by total # of years 4) Divide by costs. Express as percentage

1) Money to break even ÷ inflow that year. 2) answer x 12

Appeared value × Discount = Present Value. Present Values - Costs = NPV

Selling Price × Sales Volume

Average Variable Cost × Quantity

Variable Cost + Fixed Cost

Selling Price - Variable Cost