Calculate the equivalent annual rate of return

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Reference no: EM131848267

1. Calculate the EQUIVALENT annual rate of return with daily compounding, R365. when the monthly rate of return is 9.57% and the continous is 9.53%?

2. Why does an institution create the financial assets and not people like you and me?

3. Theoretically, the NPV is the most appropriate method to determine the acceptability of a project. A false sense of security can overcome the decision-maker when the procedure is applied properly but the positive NPV results are accepted blindly. Sensitivity and scenario analysis aid in the process by:

a. providing assurance that the most appropriate discount rate is being applied.

b. ensuring all estimated values are accurate.

c. ensuring the NPV value was calculated correctly.

d. providing information on a number of potential outcomes.

e. guaranteeing the NPV will be achieved.

Reference no: EM131848267

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