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
A prospective developer is considering purchasing a site for the construction of a ‘Business Village’ at a price of £750 000. It will provide a let-able office floor space of 17 50

The topic taken for this study is "FINANCIAL VIABILITY OF X BY APPLYING CREDIT SCORE MODEL".  The study has attempted to analyze the financial viability of the company by applyi

Food and Beverages Rooms, Restaurants and Other Services Other Income Total $ $ $ Sale

Identify one each (1) benefit, (2) disbenefit, and (3) monetary cost that would impact each of the following projects: a.A new electrical distribution station in a developing pa

Capital Structure Ratio Gearing/Leverage/Capital Structure Ratio The ratio signifies the extent whether the firm has borrowed fixed charge capital to finance the

Example of Quantity Discounts Consider illustration one and suppose that a quantity discount of 5 percent is given whether a minimum 200 units is ordered. Required Fin

A Ltd.'s share gives a return of 20% and B Ltd.'s share gives 32% return. Mr. Gotha invested 25% in A Ltd.'s share and 75% of B Ltd.'s shares. What would be the expected return of

Functions of the Financial Markets Functions of the Financial Markets or Institutions in Economy 1. Allocation of financial resources to the mainly productive units. Saving


What is cash deficit?And what is cash surplus?Describe each of them in detail.