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!
Occasionally cash flows may have to be discounted more often than once a year semi- monthly, daily, annually or quarterly. The outcome of this is as fold
(i) The number of periods raises
(ii) The discount rate applicable per period reduces. The formula for computing the present value in case of shorter discounting period is:
PV = FVn [1/(1 + k/m)]n/m
Here m = number of times per year discounting is done.
Illustration: Compute the present value of Rs. 10,000 to be obtained at the end of 4 years. The discount rate is 10% and discounting is done quarterly.
Solution:
PV = FV4 . PVIF k/m, m.n
= 10,000 . PVIF 3%, 16
= 10,000. 0.623
= Rs. 6230
Cashflows from investing activities Involving activities involve the acquisition and disposal of non-current assets such as; property, plant and equipment, intangible assets, a
Broadway Scripts is a service-type enterprise in the entertainment field, and its manager, Joe Numbers, has only a limited knowledge of accounting. Joe prepared the following balan
A company is necessary by law to offer an issue of new equity finance on a pro-rata basis to its existing shareholders. This makes sure that the existing pattern of ownership and c
What do you mean by base case NPV?
balance sheet format
Requirements: a. Record the following transactions in the journal of Howell Consulting. Explanations are not required. b. Create T accounts for each transaction (Use the
You are an analyst in the corporate finance department of Pet Products, Inc. You have been asked to analyze a potential new product to be introduced. The beef-flavored water will b
What is the difference between financial statements prepared from the expanded accounting equation and those prepared from a trial balance?
Determine out the future value of Rs.1000 compounded yearly for 10 years at an interest rate of 10 percent. Solution: The future value 10 years thus would be FV = PV (1+k)
Group Accounts A company can have investments in other companies in the form of: ordinary shares, preference shares and loan stock. The investment in ordinary shares leads to own
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd