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!
Net Present Value Method - DCF Technique
The method discounts outflows and inflows and ascertains the total present value via deducting discounted outflows from discounted inflows to get net present cash inflows such is the present value method will include selection of rate acceptable to the management or equivalent with the cost of finance and this will be utilized to discount outflows and inflows and net present value will be equivalent to the present value of inflow minus present value of outflow. If NPV is negative you do not invest, if net present value is positive you invest.
Pv(inflow) - Pv(outflows) = NPV
Note
Initial outflow is at time zero and their value is their real present value. By this method, an investor can ascertain the viability of an investment with discounting outflows. During this case, a venture will be viable whether it has the lowest outflows.
NPV = [A1 / (1+K)1 + A2 / (1+K)2 + A3 / (1+K)3 + .... AN / (1+K)N] - C
Whereas: A = annual inflow
K = Cost of finance
C = Cost of investment
N = Number of years
Cost of Redeemable Debentures and Preference Shares Redeemable fixed return securities have an exact maturity period. The cost of those securities is called redemption yield
Earning method - Bases of Valuation The business is valued according to the net stream of income it is expected to create over its lifetime. Determination of maintaina
If you inherited $ 45,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 25 years?
Partnership Definition -Partnership may be defined as a relationship between persons carrying on a business in common with a view of profits. In partnership business, two or mo
J inherited 30000 & decides to open a hair salon.make arrangements 1/4/1016 commits 10000 to the business Opens an a/c under j hair salon What will be the amount under capital in
Underwriting - Stock Market 1. This is the supposition of risk relating unsubscribed shares 2. When new shares are issued, they might be beneath -written or unsubscribed. A
how to do balance sheet
1) What is the holding period return to an investor who bought 100 shares of Charter Oil nine months ago for $36 a share, received two $50 dividend checks, and sold the s
The Audiology Department at Randall Clinic offers many services to the clinic’s patients. The three most common , along with cost and utilization data, are as follows: Service Var
Cost of Retaining Finance This will contains dividends for share capital and interest for debt finance or can say tax deducted or like effective cost of debt. Though, when co
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