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Q. Demerits of profitability index method?
Demerits of PI method:-
(i) This method is complicated to understand and implement
(ii) Calculations in this method are complex.
(III) Internal Rate of return Method (IRR):- IRR method is as well known as marginal efficiency of capital, time adjusted rate of return, marginal productivity of capital and yield on investment.
Like the NPV method the IRR method as well takes into consideration the time value of money by discounting the cash flows. IRR is the discount rate at that present value of cash inflows is equal to the present value of cash outflows.
What are the Limitations of ratio analysis A ratio on its own is meaningless. Accounting ratios should always be interpreted in relation to other information, for illustration:
Explain the operating cycle of a vegetable growing business
Q. What do you mean by Wealth Maximization? This is also known as value maximization or net present worth maximization approach, it takes into consideration the time value of m
Examples of ICQ's and ICEQ's ICQ: "Does an authorised senior person review purchase invoices before payment is made?" ICEQ: "Can payments be made on purchase invoices th
Do you provide help in college level Managerial Finance?
Explain Capital Budgeting and its methods.
Explain the implications of the deviations from the purchasing power parity for countries’ competitive positions in the world market. Answer: If exchange rate changes satisfy pu
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Does the shareholders' equity represent the savings a company has accumulated through the years? No. The number which shows in the Shareholder's Equity of a company that was fo
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