Already have an account? Get multiple benefits of using own account!
Login in your account..!
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!
Advantages and Disadvantage of Profitability Index
Advantages of profitability index
a) Simple to understand and utilize.
b) The part of NPV in the venture will show that venture is more powerful as the most profitable venture will contain the highest P.I. like the difference or total P.I. will continue to the company's profitability.
c) It allows time value for money and at the similar time the NPV of a venture at its present value that is consistent by investment appraisal requirements.
Disadvantages of profitability index
a) It may be helpful under situation of uncertain cost of finance used to discount inflows and yet this cost is a complex item because of the explicit and implicit part.
b) It may be not easy to ascertain whether the economic life of a venture is long and it yields large inflows since their discounting may call for utilize of computers such are expensive.
Broker - Stock Market 1. A dealer on the market who that sells and buys securities on behalf of the public investors. 2. And he is an agent of investors 3. He is t
If banks expect an unusually large increase in withdraws from checking deposit accounts in the near future, what would happen to the federal funds rate, borrowed reserves and nonbo
Definition of Stock Exchange According to Pyle: "Stock Exchange are market places where securities which have been listed thereon, may be bought and sold for either investme
Objective of Liquidity management?
$1,000 of insurance had not been used up by January 31. $325 of insurance had been used up in January
Shareholders and Management There is near separation of ownership and management of the firm. Landlord employs professionals as managers who such have technical skills. Manage
Valuation of Share A number of parties are interested however in the value of shares and securities and that will include: Company shareholders, vendors and directors of
Development of Plastic Money in Middle Asia Motive behind the Fast Development of This Finance (Plastic Money) In Middle Asia a) High incidences of fraud via dishonest empl
Which of the following is not considered to be an investment objective
Louis Futon Co. is currently an all-equity firm. The current market value of the company is $80 million. The corporate tax rate is 35%. What is the new value of the company if Loui
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