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Key Performance Indicator, a measure that
is used to track the performance of the
organization to a high level (strategic)
goal.
The Net Present Value of an investment.
The measure takes into account the projected
future incomes and payments from the investment.
The value of the future incomes and payments
are reduced by a specified 'discount rate'
to allow for the 'time value of money'.
NPV is used to compare the financial benefits
of long-term projects that have different
cash flows stretching over several years.
The formula is:
Return on Investment. The
ROI is a key measure, probably the most
important single measure, of the financial
performance of an organization. It is defined
as:
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