Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
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!
Computation of Payback Period Method
1. Under uniform annual incremental cash inflows - if the venture or an asset generates uniform cash inflows then the payback period (PBP) will be given by:
PBP = Initial cost of the venture/Annual incremental cost
As like whether a venture costs 37,910/= and promises returns of 10,000/= per annum indefinitely then the PBP = 37,910/10,000
= 3.79 years
So in shorter the PBP the more viable the investment and therefore the better the option of that investments.
2. Under non-uniform cash inflows - Under non-uniformity PBP calculation will be in cumulative form and because the net cash inflows are accumulated each year till initial investment is recovered.
Discuss business taxes and their importance in financial decisions
What is the one-year Treasury security rate of 1R1? For 1R3=11%, E(2r1)= 4% and E(3r1)=5%
Advantages of Using Debt Finance Interest on debt is a tax permit able expense and as that it is reduced via the tax allowance. The cost of debt is fixed regardless of
How can you maintain highest degree of accuracy in reporting? For maintaining the highest degree of accuracy in reporting, we need to use the same chart of accounts being used
Accounts Payable Turnover Ratio Ratio for Account Payable Turnover is as Follow: Creditors/accounts payable turnover = Annual credit purchases /Average creditors
Agency Theory The agency problem between managers and shareholders can be resolved via paying high dividends. If retention is low, managers are necessary to increase additiona
Determine how much of a total loan payment applies towards principal and how much applies towards interest for a home mortgage of $177,219 with a fixed APR of 7.5% of 20 years
Based on the example in Lesson 2, compute your quarterly interest for three years if you deposit $500 at 8 percent, compounded quarterly. Remember to divide the 8 percent by 4 to g
Cum. And Ex. - Terms Used in Capital Market Authority These prefixes are written in front of other words as like capital, rights and dividends to qualify them."Cum" i
Taxation Position and Profitability & Liquidity Profitability and liquidity A company's capacity to pay dividend will be determined primarily with its capability to creat
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd