Customer Service Chat
Get quote & make Payment
discounting principle, Microeconomics
The owner of a firm Mr. Rajneesh expects to make a profit of Rs.5,50,000, Rs.6,50,000, Rs.7,50,000 and Rs.8,50,000 at the end of the 1st, 2nd, 3rd and 4th year respectively. Rajneesh believes that he will be in a position to sell the firm for Rs.32,00,000 at the end of the 4th year. Taking into consideration the likely risk and uncertainty factors, Rajneesh strongly feels that the appropriate discount rate is 15%. Calculate the value of the firm.
(The PV of Re.1 @15% at the end of the 1st, 2nd, 3rd and 4th year are:0.8696, 0.7561, 0.6575 and 0.5718 respectively).
Posted Date: 5/11/2012 7:21:28 AM | Location : United States
Ask an Expert
discounting principle, Assignment Help, Ask Question on discounting principle, Get Answer, Expert's Help, discounting principle Discussions
Write discussion on discounting principle
Your posts are moderated
Write your message here..
Keynsian cross model, keynsian cross model
keynsian cross model
What are externalities and corrective taxes, 1. What are externalities? Giv...
1. What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities? 2. What are
Risk Curves, Does the curve represent if the risk is NOT taken and the line...
Does the curve represent if the risk is NOT taken and the line connecting two points on the curve represents if the risk IS taken?
Demand and supply, what happens when price is fix and there is a change of ...
what happens when price is fix and there is a change of the supply and demand curve
Production function curve, different types of production funtion and curve ...
different types of production funtion and curve given by different economist
american antipoverty programs, how does the program food stamps work???
how does the program food stamps work????
Production for profit, Under capitalism, most production is undertaken by p...
Under capitalism, most production is undertaken by private companies (of various forms), with the goal of generating a profit to the company's owners. Profit is obtained when compa
Reverse logistic behaviour of supply chain, Purpose: this case is intended ...
Purpose: this case is intended to model supply chain, especially the reverse logistic behaviour. Description: In Cal Poly Pomona, TOM301 (Operations Management) is a core cou
Utility, discuss utility
Is it possible for a firm to be price taker and price maker, Is it possible...
Is it possible for a firm to be both Price taker and price maker? A firm can either be a price taker or a price maker. It cannot be price maker and price taker at the similar
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.