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!
Demerits of Pay Back Method:-
(i) It ignores the Cash Flows after the Pay Back Period: - The main shortcoming of this method is that it completely ignores all cash inflows subsequent to the payback period.
(ii) It ignores the Time Value of Money: - Another deficit of the payback method is that it ignores the time value of money. This method delight a rupee received in the second or third year as valuable as a rupee received in the first year.
(iii)It doesn't give the Accept-Reject Decision in case of single project: - If presume the payback period is 4 years the method doesn't provide an answer as to whether the project will be accepted or rejected.
(iv) It ignores cost of Capital: - Cost of capital isn't taken into consideration under this method.
(v) It disregards the Profitability of a Project.
In the telecom industry of the Australia, these are some most important organizations such Vodafone Austrelia, TransACT Capital Communications, Optus, and Telstra. Vodafone A
The NPV decision rule needs that a company invest in all projects that have a positive net present value. This presumes that sufficient funds are available for all incremental proj
Method to Identify the Component of Seasonal Variation in a Time Series This technique is called as Ratio to Moving Average Method. In this technique, we construct an index wh
The Rise of Derivative Market: In the 1980s, the process of liberalization and deregulation of the financial markets gained momentum when the British and American leadership l
Briefly Explain Non Financial Objectives Monetary statements of any sort are only an expression of organisational activities that can be measured. Lots of the activities of an
Explain the determinants of operating exposure. Answer: The main determinants of a company’s operating exposure are (a) The structure of the markets where the company sourc
Explain how the premium and discount are determined while assets are PTM (priced-to-market). When would the law of one price prevail in international capital markets although if fo
A portfolio manager would never prefer to make investment decision based on just one set of assumptions. Instead, he would evaluate the outcome of the selected st
Explain about the in-quote-driven according to trade intermediation. In quote-driven dealer markets, a market-maker or dealer is onto one side of each trade. (Remember that dea
Saven Travel Corporation is considering several investment opportunities in order to diversify its operations. Mr. Saven, president, is trying to determine the firm''s cost of capi
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd