Par-3: A Computer Program for Calculating Present Net Worth, Annual Equivalent Income and Rate-of-Return Simultaneously (Classic Reprint) - Tapa dura

Sinopsis

Excerpt from Par-3: A Computer Program for Calculating Present Net Worth, Annual Equivalent Income and Rate-of-Return Simultaneously

Rate of Return (sometime referred to as Internal Rate of Return) is the compound interest rate used where the present net worth is zero. In other words, rate of return is the compound interest rate that equates the present value of all future incomes with the present value of all future costs. It is assumed that all incomes can be reinvested at the same rate of return.

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