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!
Advantages and Disadvantage of Profitability Index
Advantages of profitability index
a) Simple to understand and utilize.
b) The part of NPV in the venture will show that venture is more powerful as the most profitable venture will contain the highest P.I. like the difference or total P.I. will continue to the company's profitability.
c) It allows time value for money and at the similar time the NPV of a venture at its present value that is consistent by investment appraisal requirements.
Disadvantages of profitability index
a) It may be helpful under situation of uncertain cost of finance used to discount inflows and yet this cost is a complex item because of the explicit and implicit part.
b) It may be not easy to ascertain whether the economic life of a venture is long and it yields large inflows since their discounting may call for utilize of computers such are expensive.
new features of insurance?
Government Budget Deficit If the Government spends much more than it gets in from tax revenue, it runs a budget deficit. This deficit should be covered or financed either via
ROA - Return on Assets The Average of the industry ROA was 10.02% for 2004, 6.81% for 2005, and 7.32% for 2006. The chart showed that Lenovo had a little bit higher ROA th
Ask question #MinimQuestion You are the financial accountant of Donald Bhd, a manufacturer and wholesaler of soft drinks. Donald Bhd is in direct competition with Fizz Bhd and Po
Define benefit plan for the employee participants
how can debentures be explained in class in term of game, role play etc....?
Discounts and Credit Terms Credit Terms Credit terms involve both the length of the credit time and the discount specified. The terms 2/10, n/30 means that a 2 percent d
Development Banks and Financial Institutions There are some sectors in the economy such may not secure adequate funds from commercial banks for different motives. a) May re
Valuation of Securities The previous methods were perfect for valuing the entire business however it is also essential to ascertain the value of part of a business namely shar
Bates, inc. pays a dividend of $1.25 and is currently selling for $36.95. If investors require a 12% return on their investment, what growth rate would Bates Inc. have to provide t
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