Marginal Efficiency of Investment Solution

STEP 0: Pre-Calculation Summary
Formula Used
Marginal Efficiency of Investment = Prospective Yield/Supply Price*100
MEI = YP/SP*100
This formula uses 3 Variables
Variables Used
Marginal Efficiency of Investment - Marginal Efficiency of Investment refers to an expected rate of return on investment as additional units of investment are made under specified conditions and over a stated point of time.
Prospective Yield - Prospective Yield is the expected flow of income from the investment during its lifetime.
Supply Price - Supply Price is the price at which a company agrees to supply particular goods or services at a particular time.
STEP 1: Convert Input(s) to Base Unit
Prospective Yield: 2000 --> No Conversion Required
Supply Price: 8000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
MEI = YP/SP*100 --> 2000/8000*100
Evaluating ... ...
MEI = 25
STEP 3: Convert Result to Output's Unit
25 --> No Conversion Required
FINAL ANSWER
25 <-- Marginal Efficiency of Investment
(Calculation completed in 00.004 seconds)

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IGNOU (IGNOU), India
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BMS College of Engineering (BMSCE), Bangalore
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Marginal Efficiency of Investment Formula

​LaTeX ​Go
Marginal Efficiency of Investment = Prospective Yield/Supply Price*100
MEI = YP/SP*100

What do you mean by Marginal Efficiency of Investment?

Marginal Efficiency of Investment refers to the expected rate of return from additional investment. It is calculated to make future predictions and to check the efficiency of the return that the investors will receive when they invest in that new investment opportunity. The marginal efficiency of capital/investment is the expected return from an additional unit of capital employed/investment made, while, the rate of interest specifies the returns from interest-providing security. Thus, since, the firm can earn a higher return from interest, it would not undertake additional investment in capital.

How to Calculate Marginal Efficiency of Investment?

Marginal Efficiency of Investment calculator uses Marginal Efficiency of Investment = Prospective Yield/Supply Price*100 to calculate the Marginal Efficiency of Investment, Marginal Efficiency of Investment refers to an expected rate of return on investment as additional units of investment are made under specified conditions and over a stated point of time. Marginal Efficiency of Investment is denoted by MEI symbol.

How to calculate Marginal Efficiency of Investment using this online calculator? To use this online calculator for Marginal Efficiency of Investment, enter Prospective Yield (YP) & Supply Price (SP) and hit the calculate button. Here is how the Marginal Efficiency of Investment calculation can be explained with given input values -> 25 = 2000/8000*100.

FAQ

What is Marginal Efficiency of Investment?
Marginal Efficiency of Investment refers to an expected rate of return on investment as additional units of investment are made under specified conditions and over a stated point of time and is represented as MEI = YP/SP*100 or Marginal Efficiency of Investment = Prospective Yield/Supply Price*100. Prospective Yield is the expected flow of income from the investment during its lifetime & Supply Price is the price at which a company agrees to supply particular goods or services at a particular time.
How to calculate Marginal Efficiency of Investment?
Marginal Efficiency of Investment refers to an expected rate of return on investment as additional units of investment are made under specified conditions and over a stated point of time is calculated using Marginal Efficiency of Investment = Prospective Yield/Supply Price*100. To calculate Marginal Efficiency of Investment, you need Prospective Yield (YP) & Supply Price (SP). With our tool, you need to enter the respective value for Prospective Yield & Supply Price and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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