REVERSE COST-BENEFIT METHOD Definition

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REVERSE COST-BENEFIT METHOD is based on the short-cut rate of return formula and amounts to asking the question: given the cost of the investment, what level of annual benefits would produce a given rate of return (8 percent, for instance) on the investment?

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TOTAL LIABILITIES & NET WORTH is the sum of all liability items and Net Worth.

UNREALIZED ACCOUNTS RECEIVABLE, in cash based accounting, is monies due but not received; can be used to offset taxes.

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