Earning rate

Unless otherwise defined, the present value of the expected future net cash inflows (net revenues: revenues less taxes) from an investment (in machine equipment; in machinery). The total amount depends on – the amount of net revenues expected in each period, – the time span (useful life, economic life: period over which a machine is expected to be functioning, with normal repairs and maintenance, for the purpose it was acquired), – the level of the discount rate and – if applicable, the expectation of a cash inflow from the sale of the old equipment at the end of the useful life.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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