Advantage of profitability index method, Financial Management

Assignment Help:

Q. Advantage of Profitability Index method?

Advantage of PI method:-

(i) Similar to the other DCF techniques the PI method as well takes into account the time value of money.

(ii) It considers every cash flow during the life-time of the project

(iii)PI method is a dependable method in comparison to the NPV method when the preliminary investment in various projects is different.


Related Discussions:- Advantage of profitability index method

Prepare a revised aging schedule of account, Debit Credit Accounts recei...

Debit Credit Accounts receivable $300,000 Allowance for doubtful accounts $35,000 Sales for 2010 were $5,500,000. All sales were sales on account. At the end of each month

Analyze the corporate financial statements, You are currently an Analyst wo...

You are currently an Analyst working for a finance publication firm and as part of your responsibilities; you are required to provide a monthly forecast and analysis of certain com

Explain the term- administration of decisions, Explain the term- administra...

Explain the term- administration of decisions Conformance, compliance and efficiency This is focussed on the "administration of decisions" . Processes and procedures m

M.r, capital structure

capital structure

Collecting information and forecasting in budget, Collecting Information an...

Collecting Information and Forecasting: All budgets must be based on accurate and reasonable information. A budget derived from information which is irrelevant to the actual or

How does it help financial managers make business decisions, What is the in...

What is the investment opportunity schedule (IOS)?  How does it help financial managers make business decisions? The investment opportunity schedule illustrates graphically pro

Constructing index numbers, Constructing Index Numbers There are two a...

Constructing Index Numbers There are two approaches for constructing an index number namely the aggregates method and average of relatives method. The index constructed in eit

Volume of issues of central and state government securities, Volume of Issu...

Volume of Issues of Central and State Government Securities The growth of government securities market in India and the investor response to the government bond issues can be k

Describe puttable-convertible-foreign bonds and eurobonds, Describe the Put...

Describe the Puttable, Convertible, Foreign and Eurobonds. With puttable bonds the release date is under control of the holder (that is the opposed of the callable bond case)

Determine market risk premium, To determine Henkel's corporate beta, unleve...

To determine Henkel's corporate beta, unlever (and relever) the ordinary least squares (OLS) market betas for each company in the European Household and Personal Care segment. Pric

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd