Tag Archives | Marginal Efficiency of Capital (MEC)

Marginal Efficiency of Capital (MEC) and Investment

The following article will guide us to learn about how to calculate Marginal Efficiency of Capital (MEC) and investment. Normally, we conceive of an investment project as the purchase of an asset which yields a stream of returns (cash flows) over time. (R1, R2,...., Rn) where the last return includes the scrap value of the income-earning asset or capital goods [...]

By Nipun S|2017-01-13T05:55:19+05:30January 13, 2017|Marginal Efficiency of Capital|Comments Off

Marginal Efficiency of Capital (MEC) (With Formula)

In this article we will discuss about Marginal Efficiency of Capital (MEC):- 1. Meaning of Marginal Efficiency of Capital 2. Factors of Marginal Efficiency of Capital 3. Criticisms. Meaning of Marginal Efficiency of Capital (MEC): MEC refers to the expected profitability of a capital asset. It may be defined as the highest rate of return over cost expected from the [...]

By Kirti Shailesh|2016-05-23T06:14:23+05:30May 23, 2016|Marginal Efficiency of Capital|Comments Off