4.2.4.2. Economic Indicators

Try these first

1. 1.

   Define Economic Indicators.

   Hint

   Think of metrics that reflect economic health.

2. 2.

   What does ROI measure?

   Hint

   It's a profitability metric.

3. 3.

   What does ROI stand for?

   • Return on Interest
   • Return on Investment
   • Return on Income

   Hint

   Think about what it means when discussing investments.

4. 4.

   True or False: Cost-Benefit Analysis can only be used for environmental projects.

   • True
   • False

   Hint

   Consider how it applies in business decisions.

5. 5.

   A project costs $50,000 and expects annual benefits of$12,000 for 5 years. Calculate the CBA and advise if the project should proceed.

   Hint

   Calculate the total benefits first.

6. 6.

   XYZ Corp has an EVA of $5 million. If they aim for 10$40 million, calculate if they achieved their goal.

   Hint

   Compare EVA with the target profit margin.