Payback

time it takes for capital budgeting projects to recover their initial costs

BEP

BEP is a point at which a company sells enough volume to cover the fixed cost

BEP (volume)= Fixed Cost/Contribution=FC/sales-Variable cost

Fixed cost=operating FC

Payback is related to capital investment

IRR

internal rate of return

NPV

NPV must be positive for an investment decision

Discounted Cash Flows

Activity Based Costing