What is your perspective of the NPV method

Assignment Help Accounting Basics
Reference no: EM133112814

Question - The NPV uses the provision of assumption of the initial money to use. Too high capital assumption will hinder a good investment, and too low money will result in a suboptimal investment. In addition, the NPV method does not help compare two projects of different sizes because the size of the output depends on the size of the input.

Is the meaning talking of value? What is your perspective of the NPV method when there are multiple projects under consideration with unequal life?

Reference no: EM133112814

Questions Cloud

Calculate the gross profit for the month ended December : In December you sold 3 items for $400, $443 and $600 respectively. Calculate the gross profit for the month ended December 31
Building Economic Assignment : Building Economic Assignment Help and Solution, Leeds Beckett University - Assessment Writing Service - A sensitivity analysis of Internal Rate of Return
What is the yield to maturity at a current market price : Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 9%. What is the yield to maturity at a current market price
Discusses relationship between stress and illness : Discusses the relationship between stress and illness. Describe the main findings. Discuss what kind of follow-up research you think is needed in this area.
What is your perspective of the NPV method : Is the meaning talking of value? What is your perspective of the NPV method when there are multiple projects under consideration with unequal life
How does the use of funds differ for general insurance : DBS Bank has just purchased a new car fleet and is considering taking out a 3-year insurance policy from their insurer. The insurance company offers them the op
Announcement related to healthcare industry : Conduct a search of media sources to identify one recent news story and/or announcement related to the healthcare industry.
Target weighted average cost of capital : Rcm wants to have a weighted average cost of capital of 9%. The company's after-tax cost of debt is 5% and the cost of equity is 11%. What debt / equity ratio i
How much in total assets does Young ?have : Young then bought supplies for $2,600 on account. Separately, Young paid $5,500 for equipment. How much in total assets does Young have

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

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

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

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.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

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 and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd