Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Application of concept of TVM
Sometime the financial manager has to deal with the varying situation of the decision making where the concept of TVM needs to be applied in the one form or the other However. It may be noted the proper understanding of the cash flows selection o0f the appropriate discounting compounding technique and Appling the correct are some of the prerequisites of an appropriate decision based on TVM. Practice and experience, both are required for the purpose use of the technique of TVM. The following are the sum of application of the concept of the TVM.
1) finding out the implicit rate of the interest: several financial institution have issued the deep discount bond (DDB) where the investor is required to pay a specific amount per bond at the time of the of issue and receive a much a large amount at the end of the a specific period the rate of interest is not given the technique of the TVM can be applied to find out the implicit rate of interest applicable to DDBs.
2) Finding out the number of period: sometime one may be interested to find out the time over the period which a certain amount will grow at the given rate of interest to a certain value. In this case the value can be ascertained by solving the followings equation
FV= PV (1+r) n
Advantages: It is easy to calculate and catch. With the help of this technique, projects can be ranked in terms of their economic merits without much of complication.
Corporate Reorganisations This topic deals principally with mergers and takeovers. It's very highly examinable. The discussion areas overlap with business strategy paper so don
a) Tonddu plc is expected to report record earnings of £120m next year. It has grown rapidly over the last few years, the growth has been achieved by maintaining a high level of
Compare and contrast a defined benefit and a defined contribution pension plan. In defined benefit plan retirement remuneration are determined by a formula that typically
The Walter's model, thus relates the question of distributing the dividends and retaining the earnings to the investment opportunities that are available with the firm. (i) If a
Q. Introduction of just-in-time inventory management? It has already been observe that a reduction in inventory due to the introduction of just-in-time inventory management ca
How are translation gains and losses handled in a different way as per to the current rate method in comparison to the other three techniques, which is the current/noncurrent metho
Generally Accepted Accpunting Principle or GAAP The American Institute of Certified Public Accountant (AICPA) elaborates financial accounting theory and commonly accepted acco
Various Types of Strategies Different types of hedge fund strategies are discussed as follows: Relative Value of Strategies: Relative value strategies are also known as no
Explain the Role of commission authorities Competition Directorate is one of the independent public bodies which help ensure healthy competition between companies which then be
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd