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. Describes the Certainty Equivalent Coefficient Method?
Introduction: - Certainty equivalent coefficient process which makes adjustment against risk in the estimates of future cash inflows for a hazardous capital investment project.
In this process adjustment against risk is made in the estimates of future cash inflows of a risky capital project by adjusting to a conformist level of the estimated cash flows of a capital investment proposal by applying a correlation factor termed as certainty equivalent coefficient.
Formula for Computing Certainty Equivalent Coefficient: - The certainty equal coefficient is the ratio of riskless cash flow to risky cash flow. The certainty equal coefficient can be calculated with the help of the following formula:
Certainty Equivalent Coefficient = Riskless Cash Flow / Risky Cash Flow
(1) Riskless Cash Flow: - Riskless cash flow signifies the cash flow which the management expects when there is no risk in investment proposal.
(2) Risky Cash Flow: - Risky cash flow signifies the cash flow which the management expects when there is risk in investment proposal.
Hedging Using Commodity Futures Producers of agricultural commodities are faced with price risk and production risk over a period of time and within a marketing year. In case o
QUESTION 1 (a) What do you understand by the term Civil Society Organisations? (b) Distinguish between sectional and promotional groups. Give examples to support your answer
Absolute Performance Standard is a method of measuring an organization's development and how effective and efficient it is at operating its business. The absolute performance stand
Q. Determining Optimum Liquid Balance? Liquid balance (balance of cash and marketable securities) must be maintained at the optimum level. It is the level which gives the minim
Valuation Methods: 2 - Year Method Perpetual Growth Method Constant Growth Method Zero Growth Method Growth Phases Valuation Model: 'Constant Growth Met
What is Rationale and behind profitability maximisation Rationale & behind profitability maximisation, as a guide to financial decision making, is simple. Profit is a test of e
Hi, what is your time limits on providing solutions
What is the meaning of Over-capitalisation It is the opposite of over trading. It means a company has a large volume of inventories, trade receivables and cash balances though
Brown has been in business for some years and has kept her drawings slightly below the level of profits each year. You are her accountant, and she has passed you the following list
Mergers and Acquisitions It is a Process of business combination. There are 3 forms of business combination: 1. M1. M1 has the highest liquidity. This is the narrowest t
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