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q show the accounting profit criteriaaccounting profit criteria - under accounting profit criteria there is merely one method for making capital
q what are the difficulties of capital budgeting1 measurement problems - identifying as well as measuring the costs and benefits of a capital
q importance of capital budgeting decision1 such decision affect the profitability of the firm - capital budgeting decision influences the long-term
q features of capital budgeting decisionsfeatures of capital budgeting decisions- moneys are invested in long-term assets moneys are invested in
q definition of capital budgetingcapital budgeting is the procedure of making decisions for investment in long-term assets it is a method of deciding
q types of investment decisions1 short-term investment decisions - this kind of investment decisions related to the short-term assets these decisions
q what do you signify by investment decisionsinvestment decision - the most significant function of financial management isnt only the procurement of
q show the present value of a single flow discounting or else present value of a single flow lump sum- we are able to determine the pv of a future
q explain discounting or present value conceptdiscounting or present value concept - according to this concept rupee one of today is more valuable
q explain compound value of an annuitycompound value of an annuity - annuity demotes to the periodic flows of equal amountsfv a 1in - 1iinstance -
compounded value of a series of cash flows - we have considered merely single payment made once as well as its accumulation effect an investor
multi-period compounding or else future value - if the company determination compounding interest half-yearly semi-annually instead of annually then
q example on compound value of the single flowmr x invests rs 1000 at 10 is compounded yearly for three years compute value after three yearsfv pv
q show the compound value of the single flow compound value of the single flow lump sum- the process of computing future value becomes very
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
q describes the concept of time value of moneytime value of money signifies that the value of a unit of money is different in different time periods
q merits of wealth maximization approachmerits of wealth maximization approach-the wealth maximization schema is superior to the profit maximization
q diffrence between present values of future cash the difference among the present values of future cash inflows generated by an asset and its cost
wealth maximization - it is as well termed as value maximization or net present worth maximization this schema is now universally accepted as an
criticism of profit maximization approachi ambiguous - one practical complexity with this approach is that the term profit is ambiguous different
q explain profit maximization approachi best criterion on decision-making- the goal of revenue maximization is regarded as the best criterion of
what are the objectives or goals of financial managementobjectives of financial management - it is the responsibility of the top management to lay
q describe the functions of controller1 planning and budgeting - it comprises capital expenditure planning profit planning budgeting inventory
functions of treasurer-1 cash management - it comprises the managing of cash receipts and cash payments of the business2 banking relations - it
functions of financial manager - the financial manager is a associate of top management he is intimately associated with the formulation of financial