Modern / discounting cash flow techniques, Financial Management

Modern / Discounting Cash Flow Techniques : These methods generally are of more use to businesses in their investment decisions. They take into account the time value of money and adjust their cash flows consequently before taking a decision. That is the reason why they are measured superior to the traditional methods. There are four techniques under this category of methods. They are -

  • Net present value (NPV)
  • Internal rate of return (IRR)
  • Profitability index (PI)
  • Discounted Payback Period (DPBP)
Posted Date: 10/15/2012 9:21:14 AM | Location : United States

Related Discussions:- Modern / discounting cash flow techniques, Assignment Help, Ask Question on Modern / discounting cash flow techniques, Get Answer, Expert's Help, Modern / discounting cash flow techniques Discussions

Write discussion on Modern / discounting cash flow techniques
Your posts are moderated
Related Questions
Illustration  The monthly yield of a mortgage backed security is 0.75%. Find out the annual yield for this security. Solution Annual yield = 2 [(1 + 0

Floating rate securities can be broadly divided into following two parts: Floating-rate securities that have constant quoted margin. Floating-rate sec

Fundamental ingredients of Management of working capital Management of working capital has two fundamental ingredients: (1) an overview of working capital management as a wh

Explain the purchasing power parity, both of the absolute and relative versions. What causes the deviations from the purchasing power parity? Answer:  The absolute version of p

Working capital cycle for a trade Inventories days (time inventories are held before being sold)   Plus   Trade receivables days (how long

Big Joe's is changing a piece of equipment.  The equipment will cost $5,000 and has a 5 year life.  The equipment can be leased for annual payment of $1,295 paid at the starting of

Question- Under a hire purchase deal structured by X Finance Ltd. for Y Corporation, the finance company has offered to finance the purchase of equipment that costs Rs. 200 lakh.

Define the P/E valuation method. Under what circumstances should a stock be valued using this method? The P/E ratio points out how much investor are willing to pay for each dol

Putable bonds can be redeemed prior to maturity at the initiative of the bondholder. These bonds are more advantageous to the investors as they get an opportunity to re

comparative analysis on these two food retailing giants