Define Benefit Cost Ratio or Profitability Index
Briefly describe the term Benefit Cost Ratio (or B/C Ratio) or Profitability Index (or PI)?
Expert
Profitability index (or PI) is also named as profit investment ratio (or PIR) and as well named as value investment ratio (or VIR) that tells that a proposed project will have the ratio of induce to investment. It is like a tool that is employed for ranking projects and it permits quantifying the amount of value formed per unit of investment. If the value of profitability index is less than 1 then admit the project and if it is greater than one then refuse the project. Another way to compute the profitability index is prospect cash flows divided by the initial investment.
“In the corn market, demand often exceeds supply and supply sometimes exceeds demand.” “The price of corn rises and falls in response to changes in supply and demand.” Among these 2 statements used correctly which in the terms “supply&rdq
Why Public or social goods not be produced through the market?
The main advantage of using EVA is that it is simple to calculate and understand. It uses simple measures like operating profits and cost of capital terms which are widely known and accepted in the financial arena. It helps the managers to assess thei
Illustrate the Risks involved with bonds?
The market-based economic system: (1) Appears to be ‘natural’ as it has existed in all societies. (2) Has dominated the economic relationships in United States since from the year1492. (3) Guided resource allocation in middle ages. (4) Is
What are the 2 definitions of economics growth?
Illustrate other than price many factors determine the outcome?
Favor laissez- faire economic policies tended by Adam Smith, who also: (w) saw the requirement for several state intervention. (x) believed there were no conditions in which the government must intervene. (y) supported most government
Briefly state the pros and cons of Proprietorship?
Illustrate the rate of exchange of two products?
18,76,764
1943786 Asked
3,689
Active Tutors
1429910
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!