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The concept that money has time value is one of the most fundamental notions of investment analysis. For any type of productive asset its value will based on the future cash flows related with that specific asset. So as to assess the adequacy of cash flows one of the significant parameters is to assess the time value of the cash flows that are: Rs.100 acquired after one year would not be similar as Rs.100 received after two years. There are numerous reasons to account for this dissimilarity based upon the timing of the cash flows, several of that are as given below:
Translating the present value of money into its equal future value is considered as compounding. Translating a future value or cash flow in its equivalent value in a prior era is considered to as discounting. This section deals with fundamental mathematical techniques used in discounting and compounding.
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Notsofast Inc. acquired land for $500,000 on 7/1/2010. It erroneously recorded the full amount as an expense. Explain what Notsofast must do when it discovers the error in 2011. Wh
the salaries paid in 2004 is rs. 500000 salaries outstanding is rs.20000 salaries paid in advance for 2004 is rs 30000 what is the actual salary expenditure for 2004?
The city of Fredericton operates automobile parking facilities and is evaluating a proposal to erect and operate a structure for parking in the city's downtown area. 2 designs for
Your friend Peter is planning to set up a new business which will manufacture and sell wooden tables. The parts that make up the table consist of a wooden table top measuring 1m by
You have been hired as consultants to advise Mr D of DN Company limited on the performance of his company which has been in business for two years. He has provided you with a subs
Promissory Note - Evidence of a DEBT with specific amount due and interest rate. Note may specify a maturity date or it may be payable on demand. Promissory note may or may not acc
Q. Problems and difficulties associated with forecasting? We have relied to a great degree on the forecasting of data in order to provide an evaluation of the proposal. Not the
Explain the term - Providing a service One way of viewing accounting is as a form of service. Accountants provide economic information to their 'clients', who are numerous user
Q. What are Junk Bonds? Junk Bonds - DEBT SECURITIES issued by companies with higher than normal credit risk. Considered ‘non-investment grade' bonds, these SECURITIES ordinari
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