Formula Sheet

Management Accounting:
𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡
Break-even point = b = (𝑠𝑎𝑙𝑒𝑠 𝑝𝑟𝑖𝑐𝑒−𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑢𝑛𝑖𝑡 𝑐𝑜𝑠𝑡)

Contribution margin = sales price – variable unit cost

Finance:

Present Value of constant annuity:

Future Value of constant annuity:

 
 
FVAn C , r  = C  1  r  1
N

 r 
 
 

Net Present Value (NPV):

with

 I = initial investment cost

 CFt = cash flow at the end of period t
 r = current (annual) interest rate = opportunity cost of capital
 N = life time of investment project (e.g. machine)
 A = residual value

Internal Rate of Return:

Valuation of a share:

Value of a share:

With Divt = dividend in year t

rE = required return by shareholders