Define net present value, and explain how it is calculated.Solut.pdf

•

0 likes•3 views

Net present value (NPV) is a capital budgeting technique used to evaluate capital projects. NPV is calculated by discounting the future cash inflows of a project by the cost of capital to get the present value of cash flows, then subtracting the initial investment amount. If NPV is positive, the project generates higher returns than the investment and is accepted; if NPV is negative, returns are lower than investment and the project is rejected. NPV is calculated by taking the sum of discounted future cash flows and subtracting the initial investment amount.

Education

Define net present value, and explain how it is calculated.
Solution
Net present value is a Capital Budgeting technique used to evaluate the acceptability of a Capital
project. In this method the future cash inflows of a project are discounted by the cost of capital to
get the present value of the cash generations from the project. Difference of this PV of cash
inflows and the intial investment amount of the project is the Net Present Value or NPV of the
project. If the NPV is positive then the projcet has generated more return to the investors than the
invested amount and the opposite is true when NPV is negative. A project is accepted when its
NPV is positive . It is a very simple and effective method of Capitalinvestment evaluation.
For example the Invetsment in a project is I , amd it generates cash flows c1, c2 ,c3 ......cn in n
years and the cost of capital is r.
Then NPV of the project will be
c1/(1+r) + c2/(1+r)^2+c3/(1+r)^3 ......cn/(1+r)^n - I ( assuming Invetment is done in the initial
year , so no discounting required )
When this value is >0 , the project is accepted and when this is <0 , then the project is rejected.

Similar to Define net present value, and explain how it is calculated.Solut.pdf

Chapter8 investmentcriteria

AKSHAYA0000

Net Present Value(NPV).pptx

Simhadri Bhavana

FM Ch6 Capital Budgeting.pptx

BarzalaCarcar

New Approach to NPV

Sandip De

Net present value

nailul khaira

Lecture cash flow evaluation new

Bsgr Planmin

Lecture cash flow evaluation new

Bsgr Planmin

Capital investment appraisal.ppt

DiptimayeeMishra9

Net present Value, Internal Rate Of Return, Profitability Index, Payback, dis...

Akhil Sabu

(LO2 _ LO1) Chap 3_1 Analysis Methods v1_43.pptx

rubil2

Net Present Value A

Craig Brown

Internal rate of return

N A M COLLEGE KALLIKKANDY

Futurum training capital budgeting (intermediate) Date : see at the website “futurum corfinan” (2-day training) Venue : Hotel at Jakarta Pusat Notes : Presentation slides will be distributed in softcopy Minimum participants = 10 persons After the training, participants are allowed to discuss about the training materials via email in the website Contact email : futurumcorfinan@gmail.com Visit Website and Training Testimonials : google “futurum corfinan”

Futurum training capital budgeting (intermediate)

mputrawal

present worth analysis.ppt

ashwinigupta38

THAI MUSIC-Mariestela e

Mj Rufin

Cf Capital Budgeting 6

rajeevgupta

Cf Capital Budgeting 6

rajeevgupta

Cf%20 Capital%20 Budgeting%206

rajeevgupta

Capital budgeting ppt@ bec doms on finance

Babasab Patil

Iii. principles of_capital_budgeting

Ezgi Kurt

Similar to Define net present value, and explain how it is calculated.Solut.pdf (20)

Chapter8 investmentcriteria

Net Present Value(NPV).pptx

FM Ch6 Capital Budgeting.pptx

New Approach to NPV

Net present value

Lecture cash flow evaluation new

Capital investment appraisal.ppt

Net present Value, Internal Rate Of Return, Profitability Index, Payback, dis...

(LO2 _ LO1) Chap 3_1 Analysis Methods v1_43.pptx

Net Present Value A

Internal rate of return

Futurum training capital budgeting (intermediate)

present worth analysis.ppt

THAI MUSIC-Mariestela e

Cf Capital Budgeting 6

Cf%20 Capital%20 Budgeting%206

Capital budgeting ppt@ bec doms on finance

Iii. principles of_capital_budgeting

More from alshaikhkhanzariarts

Define Multicollinearity in the following terms: a. In what type of regression is it likely to occur? b. Why is multicollinearity in a regression a difficulty to be resolved? c. How can multicollinearity be determined in a regression?. d. If multicollinearity is found in a regression, how is it eliminated? Solution Define Multicollinearity in the following terms: a. In what type of regression is it likely to occur? Multicollinearity exists in almost all regressions, but is only a big problem when some of the independent variables are highly correlated. So, if you have many independent variables, there\'s a good chance some of them will be highly correlated. b. Why is multicollinearity in a regression a difficulty to be resolved? Multicollinearity causes the coefficients of the independent variables in question to fluctuate wildly when any of them is put into, or taken out of, the regression. A coefficient tells you the impact of changing one \"X\" variable when all others are HELD CONSTANT. But that is impossible when the indepedent variables are themselves highly correlated: you can\'t change one without changing the others, at least not easily. c. How can multicollinearity be determined in a regression?. One can examine the CORRELATION MATRIX of the independent variables. Although there is no perfect rule, once the correlations go up to .5-.6 or more, you are very likely to have collinearity problems. You can also see whether the coefficient on one X variable changes a lot when another one is removed. d. If multicollinearity is found in a regression, how is it eliminated? The easiest way is to remove all but one of any set of X variables that are highly correlated with one another. For example, you wouldn\'t put the number of bedrooms, number of bathrooms, and square footage of a house as separate independent variables, since they tend to be VERY highly correlated. You\'d try to remove two of them..

Define Multicollinearity in the following terms a. In what .pdf

alshaikhkhanzariarts

Define the four types of organizational cultures in the competing va.pdf

alshaikhkhanzariarts

Define the four basic integrating mechanisms and explain why they are essential to achieving a seamless continuum of care? Solution 4. In the context of long term health care, hospitals are a tertiary medical facility. Usually patients being admitted in a hospital require acute medical services. Moreover the level of healthcare is more complex in terms of the type of disease or health problems of the patients. For this purpose hospitals have staff that are more technically knowledgeable and competent. Nursing homes, on the other hand, are specific to long term care of patients. They try and replicate the environment of home. In contrast to hospitals the evel of healthcare is less complex in terms of the type of disease or health problems of the patients. Nursing homes have fewer staff with high degree of technical knowledge and skills..

Define the four basic integrating mechanisms and explain why they ar.pdf

alshaikhkhanzariarts

Define Ethics and Values. What are four approaches to deciding ethical dilemmas? Solution ETHICS Ethics, sometimes known as moral philosophy, is a branch of philosophythat involves systematizing, defending and recommending concepts of right and wrong conduct.[1] The term comes from the Greek word ?????? ethikosfrom ???? ethos, which means \"custom, habit\". The superfield within philosophy known as axiology includes both ethics and aesthetics and is unified by each sub-branch\'s concern with value.[2] Philosophical ethics investigates what is the best way for humans to live, and what kinds of actions are right or wrong in particular circumstances. Ethics may be divided into three major areas of study:[1].

Define Ethics and Values. What are four approaches to deciding ethic.pdf

alshaikhkhanzariarts

Define documenting database design in Microsoft Access and give an example. Solution Microsoft access helps in printing table relationships, as shown in the relationship window. Acess can also help in printing the design charecteristics of database projects. Steps: Go to database tools, and click relationships in Relationships group. Click show table in Relationships group, to show a table. Tables can be re-arranged by dragging them. Example: Following tables can be created : product sales by category, product sales by total revenue, product sales by employee etc..

Define documenting database design in Microsoft Access and give an e.pdf

alshaikhkhanzariarts

define multivariate statistical analysis Solution Multivariate statistics is a form of statistics encompassing the simultaneous observation and analysis of more than one outcome variable. The application of multivariate statistics is multivariate analysis. Methods of bivariate statistics, for example simple linear regression and correlation, are NOT special cases of multivariate statistics because only one outcome variable is involved. Multivariate statistics concerns understanding the different aims and background of each of the different forms of multivariate analysis, and how they relate to each other. The practical implementation of multivariate statistics to a particular problem may involve several types of univariate and multivariate analysis in order to understand the relationships between variables and their relevance to the actual problem being studied. In addition, multivariate statistics is concerned with multivariate probability distributions, in terms of both:.

define multivariate statistical analysisSolutionMultivariate s.pdf

alshaikhkhanzariarts

define the distribution of sample means Solution The distribution of the means of an infinite number of samples of a certain size selected from a population Before, we talked about distributions of scores, but now we are talking about the distribution of all possible sample means of a specific size from a population SAMPLING ERROR: •The amount of error, or the difference, between a sample statistic and the corresponding population parameter •If we start with a population, and take a number of samples from that population, each of the sample means will be different from the population mean in varying degrees.

define the distribution of sample meansSolution .pdf

alshaikhkhanzariarts

Define and explain what PAC is. Solution PAC= Production activity control We can define PAC as the process that coordinates the manufacturing resoures, schedule and controlls them PAC involves many plans associated with the action, reporting the results achieved and reviving the plans etc. PAC converts what we have planed into actions by providing all the information and guide that we might need. According to McMahon, a simple Production Activity Control architecture consists of the following five building blocks : 1. Scheduler 2. Dispatcher 3. Monitor 4. Mover 5. Producer Source: KJ Singh , MBA.

Define and explain what PAC is.SolutionPAC= Production activit.pdf

alshaikhkhanzariarts

Define asymmetric information. Distinguish between hidden characteristics and hidden actions. Which type of asymmetric information contributes to the principal-agent problem? Solution Answer: Asymmetric information is said to exist where the parties involved in economic transations are not equally infomed about the quality of items being transacted. Hence one party has relatively more infomation with respect to the quality of item. Generaly Customer can not indentify the hidden features of items and becomes the victim of hidden actions by party that has more information. Now a days the management and manager have become separate entities. Manager has relatively more infomation about the firms but he does not cooperative with management while taking decisions. Hence it gives birth to problem of Principal and agent..

Define asymmetric information. Distinguish between hidden characteri.pdf

alshaikhkhanzariarts

define the following types of asymptotic behavior of a function of time as time approaches infinity 1.Constant solution( equilibrium) 2. Solution bounded from above/below 3.Bounded solution on two sides 4.Periodic solution 5.Asymptotically constant solution 6.Asymptotically linear solution 7.Asymptotically periodic solution can someone please help me define these maybe give me examples?? thank you.

define the following types of asymptotic behavior of a function of t.pdf

alshaikhkhanzariarts

Define cyberbullying and use two workable ethical theories to analyze it Solution CYBERBULLYING Cyberbullying is the use of internet or phone calls/text messages to inflict psychological harm onanother person. Under the social contract theory, this is unethical because the person beingbullied has a right to be left alone. If everyone in society bullied one another through thecyberweb, no one would be able to enjoy their connectivity. The greater good of the society isachieved when no one bullies another. Why Cyberbullying is Different Kids who are being cyberbullied are often bullied in person as well. Additionally, kids who are cyberbullied have a harder time getting away from the behavior. Effects of Cyberbullying Cell phones and computers themselves are not to blame for cyberbullying. Social media sites can be used for positive activities, like connecting kids with friends and family, helping students with school, and for entertainment. But these tools can also be used to hurt other people. Whether done in person or through technology, the effects of bullying are similar. Kids who are cyberbullied are more likely to: The 2010-2011 School Crime Supplement (National Center for Education Statistics and Bureau of Justice Statistics) indicates that 9% of students in grades 6–12 experienced cyberbullying. The 2013 Youth Risk Behavior Surveillance Survey finds that 15% of high school students (grades 9-12) were electronically bullied in the past year. Research on cyberbullying is growing. However, because kids’ technology use changes rapidly, it is difficult to design surveys that accurately capture trends..

Define cyberbullying and use two workable ethical theories to analyz.pdf

alshaikhkhanzariarts

define and explain the difference between Consumer Perception, Consumer Learning, and Consumer Research Solution Consumer perception – consumer perception is a method by which a consumer identifies, organizes and interprets information to create meaning. Consumer learning – consumer learning refers to a process by which an individual gather and interpret the purchase and consumption knowledge and experience that they apply to future related behavior. Consumer research is the study done on consumers’ preferences, attitudes, trustworthiness, habit and behavior in a market. It helps in considerate customers so that the marketing campaigns can be designed accordingly..

define and explain the difference between Consumer Perception, Consu.pdf

alshaikhkhanzariarts

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows. Solution Investing and Financing activities are reported under respective heads in cashflow statement onlyn it results inflow or outflow of cash. Noncash investing and financing activities are not a part of cash flow statement since it doesnut have any significance in a statement prepared to reflect the movement of cash in reporting period. For better understanding for readers of financial satements we disclose this information as a Note or Schedule to cash flow statement. The significant noncash investing and financing activities are 1. Purchase of Assets other than Cash ex. Company acquired assets (Investing Activity) by arranging loan , issuing securities, or any alternative way of financing ( all are financing activity} 2. Acqusition of interest in Subsidiary, associates etc by issuing security It is also an ivesting activity but doesnot result cash outflow since we are issuing shares/ debentures of the company in consideration. Issue of security is a financing activity 3. Sale/ Disposal of Assets not for cash Sale of Assets definitl;y a investing activity since the consideration is not received/ receivable in cash it result a non cash activity. Consideration may be acquring another assets, Acquiring intersest in other business, settling of debt etc, 4. Financial arrangements Acquring finance by way of issuing security or external financial sources for repaying another debt, redumption of debentures etc is also an example of noncash financing activity.

Define and explain significant noncash investing and financing activ.pdf

alshaikhkhanzariarts

Describe briefly FIVE major developments over the past twenty years or so that have led to globalisation. Solution Globalisation refers to the closer integration of countries and people around the world. It is the result of a number of factors, some unrelated, some interconnected, some of which are briefly described here. Reduced trade barriers Trade barriers have been loosened and this has been a driver of globalisation. In recent years, the World Trade Organisation (WTO) which comprises over 150 countries has been prominent in advocating free trade and has been instrumental in reducing barriers to trade in goods and services. Improved transportation Transportation systems, especially rail, shipping and air travel have improved. More goods than ever can now be moved relatively easily, quickly and cheaply from where they have been produced to countries and regions where they are consumed. In particular, the introduction of cold storage facilities and handling has made a significant difference to the extent of international trade. Low cost efficient communication systems Advances in, and the subsequent spread of, new technologies have revolutionised international communications and encouraged the development of global patterns of production and consumption. It is now possible for people to communicate with each other instantaneously and meet regularly, despite living and working in different parts of the world. As such, videoconferencing, email and webcams have all been significant developments. Increased movement of capital and technology Easier access and cheaper transport has led to increased movements of capital and technology across borders. Inevitably, this has, in turn, impacted on local cultures, knowledge sharing and learning as people travel further. Production efficiencies The development of industrial and agricultural production processes through greater automation and improved methods has decreased reliance on labour for basic agricultural and production needs. This has led to a redeployment of people to satisfy global consumer needs and wants. Improved financial systems The efficient and safe transfer of funds from the buyer to the seller is essential and so improvements in the financial systems have been important in developing international trade. There has been an enormous expansion of international financial markets. In addition, the growth of international financial institutions has enabled capital to be obtained in the cheapest markets and this would enable large projects to be undertaken in most countries and enable the countries to exploit their natural resources and skills. Emergence of BRIC economies There has been a large increase in foreign direct investment (FDI) flowing to developing and transition economies. The emergence of the BRIC economies (Brazil, Russia, India and China), plus others such as Indonesia and Mexico has fuelled world trade and globalisation. Their declining dependence on agriculture and governmen.

Describe briefly FIVE major developments over the past twenty years .pdf

alshaikhkhanzariarts

Describe briefly, the primary activities of a value chain. Solution The concept of the value chain was developed by Michael Porter in the 1970s. The value chain is a dynamic process view of an organisation with both primary and secondary activities. Briefly, the effectiveness of how value chain activities are carried out determines the value that is created by the organisation, its costs and, by implication, its profits. Primary activities can be grouped into five main areas: inbound logistics, operations, outbound logistics, marketing and sales, and service..

Describe briefly, the primary activities of a value chain.Soluti.pdf

alshaikhkhanzariarts

Describe by legal name all parties to a contract assignment. May all rights be assigned? Are anti- assignment clauses in a contract allowed to prevent assignments? Solution Following parties are involved in a contract assignment: Assignor = The party handling a contract’s obligations and benefits to another party is known as assignor Assignee = The party receiving a contract’s obligations and benefits from another party is known as assignee Under delegation of performance clauses, all rights can be assigned to the assignee except where the assignment would materially change the duty of other party or it increases the material burden imposed on him or impair his chance of obtaining return performance. Anti-assignment clauses are mentioned in a contract to prohibit one party from handling obligations and benefits of an assignment to another party. Absent of anti-assignment clause enables a party to transfer the obligations and benefits to other party..

Describe by legal name all parties to a contract assignment. May all.pdf

alshaikhkhanzariarts

Describe at least 4 reasons a company would use a performance evaluation system. Solution 1. Base the performance appraisal on an analysis of the job. 2. De?ne your performance dimensions in behavioral terms and support assessments with observable, objective evidence. 3. Keep things simple. 4. Monitor and audit for discrimination. 5. Train raters to assess performance accurately and to conduct effective appraisal discussions. 6. Provide for upper-management review before the appraisal is reviewed with the individual. 7. Provide some appeal mechanism..

Describe at least 4 reasons a company would use a performance evalua.pdf

alshaikhkhanzariarts

Describe and explain satellite remote sensing mission for monitoring water, carbon and global climate change. Solution In recent years, the subjects of water, carbon, and global climate change have attracted worldwide attention by scientists and the media. Climate change, whether associated with human- induced or natural variations, has and will continue to be important to policy makers and the public. It is clear from reports such as that by the Intergovernmental Panelon Climate Change (IPCC) [1] that Earth observations play a critical role in providing information for assessment and modeling. Improving these observations, better quality and newvariables, is a goal of most national and intergovernmental space agencies. Major initiatives are under waythat will result in benefits to a broad range of our global society. In the United States, a decadal study [2] was recently completed by the Committee on Earth Science and Applications of the US National Research Council. The committee called for a commitment from the U.S. administration to Earth observations to secure benefits for mankind. The report gives both direction and a large boost to U.S. satellite programs as it recommended NOAA to restore key observational capabilities of satellite missions and also that NASA and NOAA launch 17 new satellite missions in the next 10 years. The study also adds an additional focus to these missions: societal benefits. Other countries have also been expanding their Earth observation programs with numerous advanced concept satellite missions. Of particular relevance to this issue are articles describing the Earth observing programs of the European Space Agency (ESA), the Japanese Aerospace Exploration Agency (JAXA), the China National Space Administration (CNSA), the Canadian Space Agency (CSA), and the National Space Program Office (NSPO) of Taiwan. The ESA has a long history of Earth observation from space that began with meteorological missions and has included a series of increasingly sophisticated radars that have provided valuable data about climate and the changing environment. The ESA’s current and future Earth observing is under its Living Planet Programme and includes the Earth Explorer, meteorological, and Sentinel missions. JAXA has supported a wide range of satellite-based instruments and platforms that have and will provide global Earth observations for water, carbon, and climate. Of particular note for the future is the commitment to the Global Change Observation Mission (GCOM) that will launch a series of two types of satellites (water and climate) to provide consistent and continuous observations of key variables over a 15-year period. In addition to the United States, ESA, and JAXA programs, there are strong satellite-based Earth observing programs in Canada, China, Argentina, Taiwan, and Brazil. In this Special Issue some of the most significant recent and future Earth observing satellites planned to monitor water, carbon and global clima.

Describe and explain satellite remote sensing mission for monitoring.pdf

alshaikhkhanzariarts

Describe an algorithm that takes as input a list of n integers in nondecreasing order and produces the list of all values that occur more than once. Solution input Array [1...n] for (n = 1 n <= array size; n++) do { compare corresponding element with all other elements of the array if (element matches with some other element in the list) { if the element that matched is not present already in our list { print that element } } else { do nothing } } Just want to explain this line if the element that matched is not present already in our list i.e. when we input an array, we create a new list , initially that list is empty. when loop runs for the first time, it will check taking the first element of the array and compare it with all other elements of the array. Let\'s suppose that element is found. Now, when that element is found, then, it will be added to our list. Now, observe that when loop runs again, there comes an instance when the element that was found more than once will again run with for loop. that\'s why we are checking here to see that if that element is not already a part of current list, then only add that element. If it is present in our list, then do nothing and move on with the for loop..

Describe an algorithm that takes as input a list of n integers in no.pdf

alshaikhkhanzariarts

Describe an initial public offering for a global firm (Red Bull). 150 - 200 words with reference A discussion of some of the risks involved in the public offering and how the securities laws deal with them Please do not plagiarize. Only original work needed. Solution Initial public offering(IPO) Initial public offering (IPO) is a public offering in which shares or stock of a company are sold to institutional investors that in turn, sell to the general public, on a security exchange, for the first time. A company selling shares is never required to repay the capital to its public investors. After the IPO, when shares trade freely in the open market, money passes between public investors. Initial public offerings are mostly used by companies to raise the expansion of capital, possibly to monetize the investments of early private investors, and to become publicly traded enterprises. Risks involved in the public offering and how the securities laws deal with them There are many risks involved in IPO. Many companies that are going public for the first time are new. Therefore, when one invests in public offering stocks they are sharing the risks of the company. If the company goes under, the investor can stand the chance of losing his or her investment .Initial public offering (IPO) may be a risky investment because of the following reason How the securities laws deal with them The SEC does not regulate how the business decisions and how IPO shares are allocated(\"U.S. Securities And Exchange Commission\", 2014). However, once a company decides to go public, they must register with the SEC under the Securities Exchange Act of 1934. At the time of the registration process they provide information regarding their financial state and business operations. In addition to federal securities law, a company may also have to comply with state securities laws, also known as \"blue sky\" laws (Inc., 2014). Foreign Exchange Risks a Company Can Face and How to Mitigate Them Like any investment, either buying or selling, there are inherent risks involved. The foreign exchange risk incorporates not only the inflation of the parent country, but the inflation, economic stability, and political standings of the foreign countries. The initial evaluation of any risk is to identify the source of the risk and then find a way to minimize it..

Describe an initial public offering for a global firm (Red Bull). 15.pdf

alshaikhkhanzariarts

More from alshaikhkhanzariarts (20)