7. Based on NPV which project would you ассept?

Q: Please elaborate on the following: 1. Scarcity 2. Divisibility 3. Portability

A: Note : As per the guidelines, only first three parts will be answered. Kindly post the remaining…

Q: Explain “gain contingency”.

A: MEANING OF GAIN CONTINGENCY:- A gain contingency is an uncertain situation that will be resolved in…

Q: Discuss the different types of risks at risk management?

A: Events can have negative impact, positive impact, or both. Events with a negative impactrepresent…

Q: Describe about the DVL methods and what are its advantages?

A: Dollar-value-LIFO: This method shows all the inventory figures at a dollar price rather than units.…

Q: reliminary judgment of P300,000 was issued and is under appeal.   The entity’s attorney agrees…

A: The Accrued  liability and liability that are associated with expenses that will be made by the firm…

Q: What is horizon value?

A: Horizon value is the value of the project or the security at the end of a specified future date. The…

Q: What is Scenario Analysis?

A: Scenario analysis is an important step in the financial modelling. This is used to show the possible…

Q: What exactly are ESOPs? What are some of its benefits and drawbacks?

A: Introduction: ESOP: Employee stock ownership plan is retirement plans for employees of the company…

Q: Select a project on the basis of PPB and IRR with a mathematical example.

A: IRR Annual growth rate of growth that is estimated to be generated from an investment.

Q: What assumptions underlie the EOQ model?

A: The model that helps in calculating the optimal amount of quantity needs to be purchase for…

Q: So how would we find basic EPS?

A: Basic EPS is calculated by dividing the earnings available to common stockholders by the weighted…

Q: A project's terminal value is the ______.

A: A project's terminal value is the sum of the future values of the cash inflows compounded at the…

Q: Des the  Initial project screening by the payback method reduce the information search? How?

A: It refers to the time period that is required to get an amount invested in a project with some…

Q: What does maturity matching mean, and what is the logic behindthis policy?

A: Maturity matching It is a financing strategy for working capital. Under this strategy, financing of…

Q: What is the project’s MIRR?

A: Rate of return is the expected result of any investment or project. It can be negative or positive.…

Q: what assumptions did you make for 2a and explain

A: The dividend discount model (DDM), a mathematical technique for predicting the price of a company's…

Q: Describe the assumptions underlying CVP analysis?

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Explain the decision rules of NPV, IRR, and BCR. Which one you think is important for project…

A: Net Present Value (NPV) is referred to as the difference between the PV of cash inflows as well as…

Q: What is the relevant range of CVP?

A: Introduction: Cost-Volume-Profit (CVP) analysis, also commonly referred to as break-even analysis,…

Q: 2. What are ideal standards? What are currently attainable standards? Explain which standard is…

A: Ideal Standards:   Standards that represent the best possible outcome are known as ideal standards.…

Q: Define the term CQS Plan?

A: Introduction: Usually, stock exchanges such as the New York Stock Exchange operate as a forum where…

Q: What are the implications of CVP analysis?

A: The CVP analysis stands for cost volume profit analysis.

Q: Define net realization value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: Question One FRS for SMEs- Who can use it? Highlights of the Model(s)? Discuss key differences…

A: FRS for SMEs (Financial Reporting Standard for Small and Medium-sized Entities) is a financial…

Q: What are the key assumptions of the CAPM?

A: Introduction: The CAPM is an equilibrium model that stipulates the relationship between necessary…

Q: what formula did you use to calculate PVIFA?

A: The acronym PVIFA stands for the present value interest factor. The present value interest factor is…

Q: What are the implications of CVP analysis?

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: Describe the potential costs and benefits of LBOs?

A: LBO is the acquisition method where the company used to use the borrowed money in order to acquire…

Q: d. What is the expected value of perfect information?

A: The expected value of perfect information is the price that a healthcare decision-maker would be…

Q: Explain the difference between independent and mutually exclusive projects?with examples..

A: Independent Project Independent project means the execution of the project with its cash flow will…

Q: What is the Terminal project balance?

A: Project balance is the amount of money that is remaining in the project. Suppose a project is going…

Q: What is CVP analysis? Give three examples?

A: CVP Analysis:CVP analysis establishes the relation between cost, volume and profit of the company.…

Q: What are the CVP assumptions?

A:

Q: or working for NPV and EAA calculation?

A: EAA is calculated as shown below. EAA=NPV×r1-11+rnHere,Cost of capital/ WACC=rLife of project=n

Q: Give a detail example of option to expand

A: In order to expand the business operations and to invest in a particular project in the future with…

Q: Do NPV and IRR always yield the same conclusion (accept or reject a project)? If not, when do they…

A: Net Present Value is the difference between present value of cash inflows and present value of cash…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.