Traditional Culture Encyclopedia - Travel guide - What are the basic indicators of project investment decision of tourism enterprises?
What are the basic indicators of project investment decision of tourism enterprises?
The basic indicators of project investment decision of tourism enterprises include static investment payback period, investment return rate, net present value, net present value rate, profit index and internal rate of return. The static payback period of investment (referred to as payback period) refers to the total time required to offset the original investment with the net cash flow from the investment project operation; Investment return rate, also known as investment profit rate, refers to the ratio of investment income (after tax) to investment cost; Net present value is the difference between the discounted value of future cash flow generated by investment and the investment cost of the project; Net present value ratio (NPVR), also known as net present value ratio and net present value index, is the ratio of net present value to investment present value. Refers to the ratio of the present value of the future net cash flow of the investment scheme to the present value of the original investment; Internal rate of return method is a method to evaluate the financial benefits of project investment with internal rate of return.
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