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!
Types of Capital Budgeting Decisions:
A business organization has to quite normal face the problem of capital investment decisions. Capital investment defines as the investment in projects whose results could be available only after a year. The investment in these projects are reasonably big and to be made immediately, but the returns can be available only after a period of time. The subsequent are some of the cases where capital investment can be useful:
Replacement: Replacements of fixed assets will become essential either on account of their being worn out or becoming dated on account of new technology.
Expansion: A firm can have to expand its production capacity on account of high demand for its products and inadequate production capacity. This will require additional capital investment.
Diversification: A business seems like to reduce its risk by operating in each market rather than in a single market. In such cases, capital investment can become necessary for purchase of new machinery and facilities to hold the new products.
Research and Development: In case of those industries where technology is quickly changing, large sums of money will have to be expended for research and development.
Miscellaneous: A firm may have to invest currency in projects which do not directly help in achieving profit oriented goals. For illustration, installation of pollution control equipment may be essential on account of legal requirements. Therefore, funds will be required for such purpose also. "
It is the number that tells how many common stocks (or preference stocks) will the bondholder receive at the time of conversion. It is usually constant over
An individual agent thinks that there is a high probability that the Dow Jones will have a payoff (or points) between a=10000 and b=12000 at t=1. Design a digital option (see Fi
Baldwin Company is interested in buying a new corporate jet for $6 million. It will depreciate the jet fully in 5 years and then sell it for $5 million. The jet will use $60,000 in
Define the balance of payments. Answer: The balance of payments that is abbreviated as BOP can be defined as the statistical record of a country’s international transactions ove
Prevention of Risk - Method of risk management In case of this method, the business avoids risk by taking appropriate steps for prevention of business risk or avoiding loss, su
What is Average Collection Period Ratio? Please provide me report on Average Collection Period Ratio.
A legal claim on exact assets which were used to make loan secure.
Why is the replacement value of assets method not generally used to value complete businesses? The replacement value of assets method isn't often applied to entire business val
what role do core deposits play in predicting the probability distribution of net deposit drains
Goral is required to pay five equal annual payments of Rs. 10,000 each in his deposit account that pays 10% interest per year. Find out the future value of annuity at the end of fi
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