# Earning rate

- Canonical URL: https://www.gerhardmerk.de/earning-rate
- Post ID: 594231
- Modified: 2023-07-25T20:59:15+00:00
- Language: en

## Definition

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. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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