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Question - Capital budgeting is the process to determine the value of a potential investment/project to a firm. That is, it weeds out good investments from the bad. Evaluating capital budget projects is a critical function for any business professional.
Using what you learned from the Capital Budgeting for Video Games you completed earlier in this unit and the resources provided in this discussion, prepare a post that addresses the following:
What are the strengths and weaknesses of the capital budgeting tools (financial statistics)?
Why do business professionals use all three tools?
How did performing the calculations work for you?
What did you learn from completing the calculations?
Is the information derived from the tools intuitive, or does it need further analysis?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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