Comparison between modern and traditional methods, Finance Basics

Comparison between Modern and Traditional Methods

Both modern and traditional methods will indicate or show strong weaknesses which like a company cannot use either to choose a viable venture and for this purpose the choice of the investment will depend on that method the company has recognized it can meet its investment requirements.  The selection should not be limited to one method however at least 2 modern methods.  During all, when ranking projects, a conflict will increase between NPV and IRR especially beneath the following conditions as:

i)   If the lives of the projects are not same.

ii) Where the cash outlay is larger quite than another.

iii) When the cash flow pattern differs that is the cash flows of one project may overtime rise while those of the other reduce. During this case NPV may provide consistently correct solution especially hence as it does not yield multiple rates.

Posted Date: 1/31/2013 1:23:29 AM | Location : United States







Related Discussions:- Comparison between modern and traditional methods, Assignment Help, Ask Question on Comparison between modern and traditional methods, Get Answer, Expert's Help, Comparison between modern and traditional methods Discussions

Write discussion on Comparison between modern and traditional methods
Your posts are moderated
Related Questions

the nominal fee interest rate in your account is 7% your semi-annually rate of interest APY will be?

Able, Baker and Charlie are the only three stocks in an index. The stocks will sell for $93.$312 and $78 respectively. If Baker undergoes a 2-for-1 stock split, what is the new div

Valuation of Securities The previous methods were perfect for valuing the entire business however it is also essential to ascertain the value of part of a business namely shar

Determine the Component of Return Rate of return from an investment consists of the two: (i) Yield: Interest or dividend received is called yield. (ii) Capital Appreci

Looking at the income statement, balance sheet and cash flow statement of the company and relating it with the non financial factors, I have the important observations as below:-

Methods or Techniques of Financial Forecasting 1. Use of Cash Budgets A cash budget is a financial statement showing as: a) Sources of capital and revenue cash inflows

Taxation Position and Profitability & Liquidity Profitability and liquidity A company's capacity to pay dividend will be determined primarily with its capability to creat

Political Factors and Technological Factors - Investment Decisions i) Political factors - Under conditions of political uncertainty, that decisions cannot be completed as it

Financial Planning Project Instructions: You will serve as a financial advisor for your client to develop a financial plan. You can compile all the worksheets introduced in eac