Rate of return represents the percentage net gain or loss of an investment's initial cost over a period of time. The rate of return calculates the percentage change from the beginning to the end of a ...

Decisions regarding investing in long-term capital assets or projects are important to small businesses. Capital assets are those that generate income for a business. The accounting rate of return is ...

The internal rate of return, or IRR, allows investors to analyze the profitability of investments and companies to analyze the profitability of capital outlays. The easiest way to understand IRR is by ...

Every day, business managers make capital budget decisions -- choices about whether to invest in projects such as building a factory, upgrading machinery or investing in research and development. But ...