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

Question 1: i) Discuss  the main risks facing a retail bank in its traditional business of deposit taking and lending? ii) How can a bank manage the risks related to credit

Capital Market - Financial Markets These are markets for long term funds along with maturity time of more than one year. As like of financial instruments required here are deb

Shareholders and Creditors Shareholders And Creditors or bond or debenture holders Bondholders are lenders or providers of long term debt capital.  Usually they will provi

$1,000 of insurance had not been used up by January 31. $325 of insurance had been used up in January

List and describe the three career opportunities in the field of finance. Finance has three major career paths that are financial management, financial markets and institutions

If Metropolis Healthcare Systems have 1,150,000 in cash. How long will it take them to accumulate 2,000,000 in cash? Assume an interest rate of 5%..

Price - Sales of Goods Like where section 10 provides such the price for goods may like fixed by like: (i) Contract; and one is (ii) The manner provided within the contr

The operating and cost data of ABC Ltd. are: Sales Rs. 20,00,000 Vari

Comparison between Debt Finance and Ordinary Share Capital Differences between Debt Finance and Ordinary Share Capital as Equity Finance as   Ordina