Custom Search
Net Income
The accounting measure of a project
Sponsored Links
The accounting measure of a project operating period after-tax profit is called net profit.
NP = Σ R - Σ E (1)
where
NP = net profit (or net income)
R = project revenues
E = project expenses
Project expenses includes all costs needed to generate the revenue, including
- labor
- material
- services
- inventory
- supplies
- depreciation
- employee's salaries
- renting buildings
- insurance coverage
- income taxes
Sponsored Links
Related Topics
- Economics - Engineering economic concepts - cash flow diagrams, discount rate, internal rate of return - IRR, income taxes, inflation
Sponsored Links
Related Documents
- Income Taxes - Taxable income and income taxes
- Operating Profit - Generated profit or income
