Deciding where to invest your capital is one of the most critical decisions a business owner or a financial manager can make. It’s a process of weighing potential returns against the risks of a ...

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 ...

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 ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

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 ...

Return on equity (ROE) measures profit per dollar of equity, aiding evaluation of a company's efficiency. To compute ROE, divide net income by shareholders' equity from a company's 10-K. High ROE ...

One simple but powerful method investors can use to assess the risk and reward of a stock portfolio is using the Capital Asset Pricing Model, or CAPM, model for expected returns. The basics of CAPM ...