Gewinnvergleichsrechnung (EN)

Gewinnvergleichsrechnung

The profit comparison method evaluates different investment alternatives based on expected profit. It considers cash flow surpluses but not the time value of money. This method is suitable for selecting between investments with different utility profiles.

In Context

• Typically used together with the payback period calculation and the profitability calculation
• Related to: Net present value method, Internal rate of return method, Payback period calculation
• Example use: Comparing two machines with different acquisition costs and different cash flow surpluses