Cut off Rate:
It is the minimum rate that will be received by investor, when he invests his money. It is just similar to cost of capital or return on investment. However it is not sure that investor will invest his money at cut off rate since, investor will deeply examine his investment proposals with distinct capital budgeting methods. One of significant method is IRR in which cut off rate is compared with internal rate of return and when any project’s IRR will more than cut off rate, then that project is accepted.
Many other methods like NPV and P.I. in which we use cut off rate for computing the present value of cash inflows and cash outlay.
Following are the main factors that affect cut off rate's determination:
1. Amount of Investment:
Cut off rate is the standard rate and it influences investment decisions. The amount of investment influences cut off rate’s determination. When investment amount is very high in any investment projects, then its cut off rate will be greater than 10 percent.
2. Period of Investment:
When any investment project offers to pay the amount of investment in installments, then cut off rate will be much small however when investor has to pay all amounts in one installment, then cut off rate might be much high.
3. Risk factor:
When there is high risk with investment, then cut off rate will be very high. When there is no risk of money, then investor can spend the money at much low cut off rate.
Latest technology based Finance Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Finance help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Finance, project ideas and tutorials. We provide email based Finance help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Finance. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Finance Homework help and assignment help services. They use their experience, as they have solved thousands of the Finance assignments, which may help you to solve your complex issues of Finance. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
looking for legit drugs and crime assignment help service? our certified tutors offer plagiarism free & quality papers at low prices!
Fermentation tutorial all along with the key concepts of History of fermentation, Classification of fermentation, Microbial fermentation, Enzymatic fermentation, Fermentation Process, Product recovery and purification during fermentation
tutorsglobe.com ms-sql assignment help-homework help by online computer programming tutors
Non-Parametric Tests tutorial all along with the key concepts of Merits of Non-parametric test, The Sign test, Kruskal - Wallis Test, Formula for Kruskal-Wallis Test and Spearman Rank Correlation
Locomotion in Animals tutorial all along with the key concepts of Types of Skeletons, Skeletal Materials, Mammalian Skeleton, Functions of the Skeleton, Joints, Types of joints, Movement at the Joints
tutorsglobe.com applications of law of chemical equilibrium assignment help-homework help by online chemical equilibrium tutors
Looking for a reliable and affordable Labor-Management Relations Assignment Help service online? Approach us and get benefitted!
Systematic Classification of Microorganisms tutorial all along with the key concepts of Polyphase Taxonomy, Phenotypic classification, Phylogenetic classification, Numeric taxonomy, Taxonomic Ranks, Microbial Taxonomy and Phylogeny
tutorsglobe.com programming in web-development assignment help-homework help by online computer programming tutors
Theory and lecture notes of Resistive Configurations all along with the key concepts of resistors in series, kirchhoffs voltage law, resistors in parallel, potential divider and current splitting. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Resistive Configurations.
the function generator is an instrument that generates dissimilar type of the wave forms which are sine, square and triangular.
tutorsglobe.com mycorrhiza assignment help-homework help by online biofertilizer tutors
For Soldering, electric irons are usually employed on small armatures and gas irons on the larger ones.
Basic Chromatography Techniques tutorial all along with the key concepts of History of Chromatography, Techniques by chromatographic bed shape, Planar chromatography, Column Chromatography, Displacement chromatography, Gas chromatography, Affinity Chromatography, Size-exclusion chromatography
Ask skilled tutor for top-rated Forensics Assignment Help and obtain top-notch papers at budget-friendly prices!
1933288
Questions Asked
3689
Tutors
1482428
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!