Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Handbook of Capital Recovery (CR) Factors: European Edition
    Handbook of Capital Recovery (CR) Factors: European Edition
    Handbook of Capital Recovery (CR) Factors: European Edition
    Ebook198 pages1 hour

    Handbook of Capital Recovery (CR) Factors: European Edition

    By Lars Jäger

    ()

    Read preview

    About this ebook

    The Handbook of Capital Recovery (CR) Factors provides an easy method to calculate an annuity (payment in arrears). For negative and positive interest rates and periods up to 40 years this handbook contains the capital recovery factors. You have just to multiply the cash flow (present value) with the relevant factor to find the annuity.
    LanguageEnglish
    PublisherBooks on Demand
    Release dateJul 27, 2021
    ISBN9783753456720
    Handbook of Capital Recovery (CR) Factors: European Edition
    Author

    Lars Jäger

    Prof. Dr. Lars Jäger, Professor of Investment and Finance (Corporate Finance), University of Applied Sciences Worms, Germany.

    Related to Handbook of Capital Recovery (CR) Factors

    Related ebooks

    Banks & Banking For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      The Hidden Cost Of SBC

      Sep 23, 2022

      Many tech companies issue stock to employees to give them a stake in the performance of the company. This has been highly effective in a tech bull market and a key incentive to employees. But stock-based compensation (SBC) presents three problems for

      2 min read

    • Article

      Budget For Retirement

      Oct 30, 2019

      Retirement depends on a formula that goes something like this. Assume a 4.5% yield from the stockmarket. Now look at the table of capital and dividend returns (below) from the All Ordinaries index over the past 40 years. Forget the capital return – t

      2 min read

    • Article

      How to Spot (and Squash) Nasty Fees That Hide in Your Investments

      Jan 8, 2021

      It’s a new year, and now is the time to compile and look at all your year-end investment statements. You’re likely pretty happy to see some double-digit gains thanks to the stock market (especially tech stocks) hitting record highs. The statements th

      5 min read

    • Article

      The Often-abused Business Budget

      Sep 7, 2020

      I never cease to be amazed at how many farmers fail to prepare a detailed annual budget, and if they do, how badly it is done. A well-managed budget is a tool with the power to lift profit and grow the business. No manager worth his or her salt shoul

      2 min read

    • Article

      I Wish I Knew What EV/Ebitda Was, But I’m Too Embarrassed To Ask

      Feb 16, 2024

      The simplest way to measure the value of a company is to use its stockmarket capitalisation – the value of all its outstanding shares. However, this may not always provide a useful reflection of all the claims that different groups of investors have

      1 min read

    • Article

      Cash Trending Towards Trash

      Jun 19, 2020

      Cash Trending Towards Trash
      3 min read

    • Article

      I Wish I Knew What The EV/sales Ratio Was, But I’m Too Embarrassed To Ask

      Jul 23, 2021

      The easiest way to measure the value of a company is to use its market capitalisation – the value of all its outstanding shares. However, this may not reflect all the claims that different groups of investors have on a firm. For example, a company ma

      1 min read

    • Article

      I Wish I Knew What EV/Ebitda Was, But I’m Too Embarrassed To Ask

      Jan 21, 2022

      The simplest way to measure the value of a company is to use its stockmarket capitalisation – the value of all its outstanding shares. However, this may not always provide a useful reflection of all the claims that different groups of investors have

      1 min read

    • Article

      I Wish I Knew What Enterprise Value Was, But I’m Too Embarrassed To Ask

      Apr 9, 2021

      The simplest way to measure the value of a company is to use its stockmarket capitalisation – the value of all its outstanding shares. However, this may not always provide a useful reflection of all the claims that different groups of investors have

      1 min read

    • Article

      In The Club

      Jun 21, 2023

      In The Club
      2 min read

    • Article

      Does It Pay To Make The Highest Tax-deductible Contribution?

      Jun 3, 2023

      One of the most important decisions that fund members have to make is how much of their annual income they want (or need) to contribute to their retirement fund to ensure the best outcome. Various factors play a role in the decision-making process th

      2 min read

    • Article

      Does It Pay To Make The Highest Tax-deductible Contribution?

      Jun 3, 2023

      One of the most important decisions that fund members have to make is how much of their annual income they want (or need) to contribute to their retirement fund to ensure the best outcome. Various factors play a role in the decision-making process th

      2 min read

    • Article

      Does It Pay To Make The Highest Tax-deductible Contribution?

      Jun 3, 2023

      One of the most important decisions that fund members have to make is how much of their annual income they want (or need) to contribute to their retirement fund to ensure the best outcome. Various factors play a role in the decision-making process th

      2 min read

    • Article

      How To Use Ratios For Different Sectors On The Bourse

      Jan 10, 2020

      when investing there are several ratios you can use as part of analysing a company’s current performance or to compare it with another company. These ratios would include return on equity (RoE), price-to-earnings (P/E), debt-to-equity (D/E), cash con

      2 min read

    • Article

      Why You Need To Budget

      Sep 14, 2020

      A budget is an estimate of revenue and expenses over a specified future period and is compiled and re-evaluated regularly. It is a vital tool for any business, including a farming operation, as it enables management to take full financial and economi

      3 min read

    • Article

      7 Facts About Tax And Your Bonus

      May 26, 2023

      Send suggestions for topics and requests for info to yourmoney@you.co.za. We may answer your questions in this column but won’t reply personally. EMPLOYEES are often frustrated by the chunk of their bonus swallowed up by tax. In fact, this tax is oft

      3 min read

    • Article

      Are You Really Getting An Extra R50 000 At Retirement?

      Mar 18, 2023

      Our Minister of Finance - Enoch Godongwana - gave pension fund members some good news in his latest budget. For the first time in nine years, the tax scale amounts for lump sum retirement benefits were adjusted. The tax scale amounts for lump sum

      1 min read

    • Article

      Are You Really Getting An Extra R50 000 At Retirement?

      Mar 18, 2023

      Our Minister of Finance - Enoch Godongwana - gave pension fund members some good news in his latest budget. For the first time in nine years, the tax scale amounts for lump sum retirement benefits were adjusted. The tax scale amounts for lump sum

      1 min read

    • Article

      Are You Really Getting An Extra R50 000 At Retirement?

      Mar 18, 2023

      Our Minister of Finance - Enoch Godongwana - gave pension fund members some good news in his latest budget. For the first time in nine years, the tax scale amounts for lump sum retirement benefits were adjusted. The tax scale amounts for lump sum

      1 min read

    • Article

      Are You Really Getting An Extra R50 000 At Retirement?

      Mar 18, 2023

      Our Minister of Finance - Enoch Godongwana - gave pension fund members some good news in his latest budget. For the first time in nine years, the tax scale amounts for lump sum retirement benefits were adjusted. The tax scale amounts for lump sum

      1 min read

    • Article

      Preparing Your Practice For Eofy

      Jun 27, 2021

      Preparing Your Practice For Eofy
      5 min read

    Related categories

    Reviews for Handbook of Capital Recovery (CR) Factors

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Handbook of Capital Recovery (CR) Factors - Lars Jäger

      Contents

      PREFACE

      The capital recovery (CR) factor

      Capital recovery (CR) Factors for negative interest rates

      Capital recovery (CR) Factors for positive interest rates

      PREFACE

      This handbook contains capital recovery (CR) factors for negative and positive interest rates. Due to the development at the international financial markets negative interest rates are relevant for the valuation of investments. This book offers you a very simple, quick and effective way to calculate an annuity of payments (payment in arrears) based on a given cash flow/ present value (PV). Therefore it uses the ‚factor method'. Learn to use the method in some minutes. It's so easy! Just multiply the cash flow/ present value with the CR factor. That's all.

      Frankfurt, June 2021

      Prof. Dr. Lars Jäger

      The capital recovery (CR) factor

      The annuity as uniform payment series (payment in arrears) is the result of compounding and distributing a present value (PV) with the interest (i) over a specific time (n years). Possible taxes or friction costs are ignored! In the following tables you will find the capital recovery (CR) factors.

      The CR factors based on the calculation for one payment unit (1 €). For the calculation of the annuity you have just to multiply the CR factor with the cash flow (present value) you want to distribute.

      CR‐factor equation:

      How to find the CR‐factor in the tables

      You just have to search for the interest rate you like to use for compounding (column in the table) and the number of years (rows) for the distribution.

      Annuity calculation with CR‐factors

      Example:

      We search the annuity for 10 years (uniform annually payment series, payment in arrears)) of a cash flows of 10,000 € (present value). The interest rate is 10 percent.

      In this case, the cash flow / present value of 10,000 € has to be multiplied with the CR factor of 0.16274539 (see table). The value of the annuity is 1,627.45 €.

      Capital recovery (CR) Factors

      for negative interest rates

      Enjoying the preview?
      Page 1 of 1