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. Selection of a project in Financial Management ?
The selection of a project is typically made on the following line:
(i) In general a project becomes acceptable if it has a positive NPV
(ii) If there are two or more commonly exclusive projects generally the project whose NPV is higher or highest is selected. Instance: - Two mutually elite investment proposals X and Y under consideration previous to the management of a company. The initial outlay of every project is Rs. 30000. Both the projects are approximate to have a useful economic life span of 5 years. The estimates of cash inflows as well as their certainty equivalent coefficients are as follows:
Year
Project X
Project Y
Estimated Cash Flows
C.E.C
C.E.C.
1
2
3
4
5
25000
30000
20000
15000
10000
0.7
0.5
0.4
0.3
0.2
35000
12000
0.6
0.1
The cost of capital in favour of the company is 15%.
Compare the NPV of the two projects as well as suggest which project should be accepted by the management.
Q. What do you mean by Utility? Utility: - Financial leverage assists considerably the financial manager while devising the capital structure of the company. A high financial l
Q. Incorporation of the Risk in Investment Proposal? Incorporation of the Risk in Investment Proposal: - As stated previous risk is involved in every capital budgeting decision
Wealth Maximisation Decision Criterion This is also called as value maximisation or net present worth maximisation. Presently academic literature value maximisation is almost u
Discuss and compare hedging transaction exposure by using the forward contract vs. money market instruments. While do the alternative hedging approaches generate similar result?
PAMs are so structured that the repayments resemble traditional mortgages from the lenders' point of view and resemble GPMs from the borrowers' point of view. Thi
What is eurobond
Q. Aggressive Approach of financial management? A -firm may be aggressive in financing its assets. An aggressive policy is said to be followed by the firm when it uses short-te
Which one is true 1.the higher the discount rate the lower the cost of trade credit 2.the higher the discount rate the higher the cost of trade credit 3.cost of trade credit duri
A cash-flow yield is the discount rate that makes the price of a mortgage-backed or asset-backed security equal to the present value of its ca
There are several methods available to forecast yield volatility. But before that, let us look into the calculation of forecasted standard deviation. Assume th
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