Irr and npv, Financial Management

(a) Lonesome Gulch Mines has a standard deviation of 42% per year and a beta of 0.10.  Amalgamated Copper has a standard deviation of 31% a year and a beta of 0.66.  Which is a safer investment?  Why?   

(b) In class we called NPV the "gold standard" of investment decision rules.  What makes this so?  IRR is closely related to NPV.. Why not use that instead?

 

Posted Date: 3/1/2013 7:54:09 AM | Location : United States







Related Discussions:- Irr and npv, Assignment Help, Ask Question on Irr and npv, Get Answer, Expert's Help, Irr and npv Discussions

Write discussion on Irr and npv
Your posts are moderated
Related Questions
Q. Objectives of Cash Management? (i) To sustain Optimum Cash Balance: - The major objective of cash management is to determine the optimum cash balance required in the busines

Q. Compute the weighted average cost of capital? A company's subsequent to tax specific cost of capital are as follows: Cost of debt

Q. What is Disadvantages of IRR Method ? Disadvantages of IRR Method:- (i) Computation of IRR involves tedious calculations. (ii) Occasionally this method produces more t

Meaning of Returns The return from holding an investment over some period - say, a year, is simply any cash payments received due to ownership, plus the change in market price,

Q. Computation of Value of the Firm? Illustration:- EBIT                                                               = 50,000 10% Debentures

applicability in vegetable growing

State about the Audit plan contents 1. Report requirements and terms of reference. 2. A review of business and financial position, reviewing why changes had occurred in curr

lease finance and its types

Suppose the government wants to increase farmers’ incomes.  Why do price supports or acreage limitation programs cost society more than simply giving farmers money? Price acrea

In how many area ratios are grouped Ratios can be grouped into 3 main areas: 1 Performance - how well business has done (profitability) 2 Position - short term standing