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Compounding or Future Value Concept: - Under this process of compounding the future worth of all cash inflows at the end of the time horizon at a particular rate of interest are found. Interest is compounded when the sum earned on an initial deposit becomes part of the principal at the end of the first compounding period.
Instance: - If Mr. A invests Rs 1000 in a bank which tender him 10% interest compounded annually he as Rs 1100 in his account at the end of the first year. The total of the interest as well as principal Rs 1100 constitutes the principal for the next year. He therefore earns Rs 1210 for the second year. This turns into the principal for the third year and so on.
How to use integrated promotional mix to achieve marketing objectives
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Define the term- Earnings per share (EPS) EPS = Profit available to ordinary shareholders (PAT) / Weighted average number of shares in issue(p per share) This ratio illustra
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Net Present Value (NPV) In corporate finance, the current value (the value of cash to be received in the future expressed in today's dollars) of an investment in excess of the
As you checked the Answer Key to Question 6 in the Mastery Check from this lesson you may have noted that each year's net cash flows are calculated by adding depreciation back to n
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