if the algebraic sum of the present values of all cash flows related to a proposed capital expenditure discounted at the company's required rate of return is positive, it indicates that the:

Respuesta :

It indicates that return on investment exceeds company's required rate of return.

What is return on investment?

Return on Investment (ROI), also known as Return on Costs, is calculated as Net Revenue (Over a Period of Time) Divided by Investment. An investment's advantages surpass its costs when the return on investment is significant. to judge the performance of an investment or to contrast the performance of various different investments. Decisions made in marketing have a clear potential relationship with the ROI numerator, but they also frequently affect how assets are used and how much money is needed. The position of their business and the projected returns should be understood by marketers. When reported to executives, the effects of the marketing program must be separated from other influences in order for the marketing ROI percentage to be taken seriously. Seventy-seven percent of senior marketing managers who participated in the poll said they saw a "return on investment."

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