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Compounding or Future Value Concept: - Under this process of compounding the future worth of all cash inflows at the end of the time horizon at a particular rate of interest are found. Interest is compounded when the sum earned on an initial deposit becomes part of the principal at the end of the first compounding period.
Instance: - If Mr. A invests Rs 1000 in a bank which tender him 10% interest compounded annually he as Rs 1100 in his account at the end of the first year. The total of the interest as well as principal Rs 1100 constitutes the principal for the next year. He therefore earns Rs 1210 for the second year. This turns into the principal for the third year and so on.
a) Variable costs: Remuneration of flight attendants, Meals and drinks onboard, Fuel. Fixed costs: promotions and Advertising, Remuneration of administrative staff and Airport c
Explain about the Internal controls of benchmarking "Comprises control environment and control procedures. It includes all the procedures (internal contr
This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision. Perluence International is large manufacturer of petroleum and
Q. Objectives of working capital management? The objectives of working capital management are habitually stated to be profitability and liquidity. These objectives are habitual
Project Evaluation The expected value calculations are crucial to project investment decisions. The following example explains the use of probabilities in project evaluation.
Explain the meaning of Buy-ins This is when third party management team make a takeover bid and then run business themselves. Finance sources are same as to buy-o
Corporate debt instruments are the financial obligations of a corporation having priority over the claims of the shareholders (equity or preferred) at the time of
A. Mitt starts Examine Your Zipper Incorporated ("XYZ") in 2012 by selling common stock of $12,000,000. He promises the investors in his company a 15% return on their capital. B
QUESTION (a) List the five elements of the purchasing mix. (b) Describe briefly the four essential elements of a legally binding contract. (c) Distinguish between perform
The net income of Novis Corporation is $45,000. The company has 20,000 outstanding shares and a 100 percent payout policy. The expected value of the firm one year from now is $1,
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