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Cost of new asset+cost of installation - after tax proceeds from sale of old asset +/- change in net working capital

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Q: How do you calculate initial investment in an asset?
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Related questions

How do you calculate the rate of return on an investment?

To calculate the rate of return on an investment, you subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the percentage rate of return.


How can I calculate the rate of return on my investment?

To calculate the rate of return on your investment, subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the rate of return as a percentage.


How can one calculate the holding period return for an investment?

To calculate the holding period return for an investment, subtract the initial investment amount from the final investment value, then divide by the initial investment amount. Multiply the result by 100 to get the percentage return.


Calculate rate of return?

NPV/Initial Cost of Investment


How do you calculate the accounting rate of return please can you give specific examples?

ARR isalso known as average rate of return it measures the overall profitability of an investment it has four steps to calculate 1-caculate all cash in flow 2-subtract initial investment 3-divide the figure by life span of the investment 4-calculate what percentage is this of the initial investment by using average annual profit/initial investment x100


Is owner investment is asset?

An owner's initial investment in a company is recorded as Shareholder's Equity. The cash and other property contributed by the owner are recorded as Assets to the company.


How do you calculate the initial investment cash flow for a project or business venture?

To calculate the initial investment cash flow for a project or business venture, you add up all the costs required to start the project or venture, including equipment, supplies, and any other expenses needed to get it up and running. This gives you the total amount of money needed to make the initial investment.


What is the population of Arlington Asset Investment?

The population of Arlington Asset Investment is 2,009.


When was Arlington Asset Investment created?

Arlington Asset Investment was created in 1989.


How can one find the annual yield of an investment?

To find the annual yield of an investment, you can calculate it by dividing the annual income generated by the investment by the initial amount invested, and then multiplying by 100 to get a percentage.


What is Arlington Asset Investment's motto?

Arlington Asset Investment's motto is 'Enjoy Your Good Fortune'.


How do you find the rate of return on an investment?

To find the rate of return on an investment, you calculate the percentage increase or decrease in the value of the investment over a specific period of time. This is done by dividing the difference between the final value and the initial value of the investment by the initial value, and then multiplying by 100 to get the percentage return.