Selling Building Partnerships Study Guide Rated A+

NPV {Ans: the net value today of future cash inflows minus the investment}profit margin {Ans: the net profit the reseller makes, expressed as a percentage of sales}payback period {Ans: The length of time that it takes for a project to fully recover its initial cost out of the net cash inflows that it generates.}opportunity cost {Ans: the return a buyer would have earned from a different use of the same investment capital}simple cost-benefit analysis {Ans: Lists the costs to the buyer and the savings the buyer can expect from the investment}inventory turnover {Ans: calculated by dividing the annual sales by the average retail price of the inventory on hand}