Merits of net present value method, Financial Management

Assignment Help:

Q. Merits of net present value method?

Merits of NPV method:-

(i) Time value of funds is taken into consideration: - For the reason that this method takes into account the time value of money it is the best method to utilize for long range decisions.

(ii) Entire Life of the project is taken into consideration: - This process takes into account the fall life of the project and not only the payback period.

(iii)Wealth Maximisation: - Wealth maximization objective of the business is achieved by this method. Besides accepting the project with highest NPV the wealth of the business is maximized.


Related Discussions:- Merits of net present value method

What are the main elements of capital budgeting decisions, What are the mai...

What are the main elements of capital budgeting decisions There are three elements of capital budgeting decisions (i) long-term assets and their composition (ii) business

Approaches, Briefly discuss the three approaches to the short-term financin...

Briefly discuss the three approaches to the short-term financing problem and provide relevant examples of each?

Sources of risk, Define Sources of risk with types???? how can we analys...

Define Sources of risk with types???? how can we analysis the risk in bussiness?? plese help!!!!!

What is accumulated depreciation?, What is accumulated depreciation? De...

What is accumulated depreciation? Depreciation is the provision of an asset's initial cost over time.  Accumulated depreciation is the sum of all the depreciation expense that

Types of working capital, TYPES OF WORKING CAPITAL Working capital can ...

TYPES OF WORKING CAPITAL Working capital can be split up into two categories on the basis of time. They are Permanent Working Capital and Temporary or Variable Working capital

What is qualities of pay back method, Q. What is Qualities of Pay Back Meth...

Q. What is Qualities of Pay Back Method? Qualities of Pay Back Method:- (i) Simple: - The most important merit of this method is that it is simple to understand and easy to

Benefits of conducting a cost and benefit analysis, Question 1: i) What...

Question 1: i) What is meant by Cost and Benefit Analysis? Illustrate your answer with the use of empirical and hypothetical examples. ii) What are the benefits of conductin

Lease, Lease A lease is a contractual arrangement allowing one party th...

Lease A lease is a contractual arrangement allowing one party the use of some exact assets for a specific times period in exchange for a payment it is same as a rental arrangem

Distributing the dividends and retaining the earnings, The Walter's model, ...

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

Security offered - influence the rate of interest, Q. Security offered -  ...

Q. Security offered -  influence the rate of interest ? The rate of interest charged on the loan will be lesser if the debt is secured against an asset or assets of the company

Write Your Message!

Captcha
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