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. Calculation of internal rate of return?
The company is accurate in its belief that NPV measures the potential increase in company value of an investment project since theoretically the stock market value of a company increases by the total NPV of projects undertaken. This is accurate as long as the capital market is capable and information about new investment projects is made available to it.
It is probable that a high IRR offers a margin of safety for risky projects and it is able to be interpreted in this way. Nevertheless calculation of IRR is not a substitute for an assessment of project risk. Nespa's decision rule meant for ROCE is flawed in that if used continually it could eventually run out of investment projects that meet its hurdle rate its existing before-tax ROCE. This hurdle rate could enhance with each successive project accepted causing the company to reject projects that would have been acceptable in a previous period. But it is important to recognise that not all costs associated with the capital budgeting process are included in investment appraisal and that such costs will reduce the existing ROCE. The sunk cost of Nespa's market research is one example as well as another would be infrastructure costs that increase on a stepped basis as a result of cumulative project investment. The subsistence of such costs offers a partial justification for Nespa's ROCE decision rule.
Fixed Interest Securities No advice in writing is required before an investment in fixed interest securities is made. Government Securities. Treasury Bills. Fixed
You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi
five modern accounting techniques
March and has already accumulated $30,000 in manufacturing costs, Job B and order for 10,000silver medallions, was not started until April. Transactions for these jobs are the foll
COMMITTEE OF INSPECTION Appointment : A committee of inspection may be appointed by the creditors at their first or any subsequent meeting to supervise the trustee.
After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership indicate the following: Cash $75,000 Non cash 105,000 Liabilit
Wider-range Investments (Requiring advice in writing from a properly qualified person) Quoted shares of a company with a paid-up capital of not less than Shs10m and has
Inventories constitute a important portion of the current assets ranging from 40 percent to 60 percent for manufacturing companies. The manufacturing companies conduct investments
The cash flow as well as other benefits of factoring was discussed earlier. Invoice discounting as well offers cash flow advantages. Here selected invoices of superior quality are
Q. What do you mean by Reasonable Assurance? Reasonable Assurance - Management's assessment of effectiveness of internal control over financial reporting is expressed at the le
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd