Net cashflow versus ROI: a differential solution?

Citation

(1999), "Net cashflow versus ROI: a differential solution?", The Bottom Line, Vol. 12 No. 2. https://doi.org/10.1108/bl.1999.17012baf.002

Net cashflow versus ROI: a differential solution?

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Net cashflow versus ROI: a differential solution?

D. Burl in Management Accounting (UK), Oct. 1998 Vol. 76 No. 9: p. 25 (1 page)

Considers the factors influencing the parameters which determine return on investment (ROI) and net cash flow (i.e. internal and external cost determinants) and argues that their complexity and variety make a nonsense of any corporate target rate of return. Suggests that any such rate will reject many investments which could increase cashflow and outlines a procedure to reconcile ROI and cashflow considerations, using subjective judgement of the macroenvironment, microenvironment and organization to modify ROI data.

Subject(s): Return on investment, Cash flow, Investment, Appraisal

Style: Comparative evaluation

Reference: 27AY857 (1 credit)