Which is the most efficient analysis method used to determine the project acceptability on an economic basis?

Q: Determine the internal rate of return of a project?

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: Which of the following best explains the limitations of usin discount rate for evaluating projects?

A: Note: 'Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Why would the average rate of return differ from the internal rate of return on the same project

A:

Q: What is project financing? What are its advantages and disadvantages?

A: Project financing: It is a type of subsidizing for the most part foundation overwhelming,…

Q: To estimate project value, FCF should be computed at

A: Step 1 The income that an organization receives after a cash outflow is called a free cash flow. It…

Q: Describe the method used to evaluate investment projects?

A: Answer: The following are the methods are used to evaluate the investment proposals of a company.…

Q: How the Income-Tax Rate to Be Used in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: What are the factors affecting the discount rate used in project valuation?

A: Higher discount rate provides less value and lower the discount rate higher the value of the…

Q: How can the working-capital requirements significantly reduce a project's profitability or rate of…

A: More risky investments would bring about more returns. In this manner, an organization with high…

Q: Explain in details the differences between the two typical analyses - Sensitivyty Analysis and…

A: Both Methods, Sensitivity Analysis and Scenario Analysis help in decision making.

Q: What alternatives do companies have for evaluating alternative projects or investments?

A: Capital Budgeting Techniques helps to decide the investment project that should be selected.

Q: a. Determine the payback period of each project. b. Which project is acceptable based on payback…

A: Payback period = (Year of last negative cash flow+(Absolute value of last negative cash flow/Next…

Q: If then the project is economically justified.

A: If ERR is HIGHER, then the project is economically justified.

Q: How can a developer create value over and above their project cost when attempting to obtain…

A: Financing refers to a process of raising funds for business activities, and making purchases or…

Q: what is net present value in project management?

A: Net present value (NPV) is an important technique that is been used by the project manager in order…

Q: Why is risk incorporated into capital budgeting and how is it incorporated into the process of…

A: Capital budgeting is the process of evaluating different investment projects that require capital…

Q: How is the project profitability index computed, and what does it measure?

A: Profitability Index Profitability index is define as the ratio of net present value of cash inflow…

Q: What are some differences in the analysis for a replacement project versus that for a new expansion…

A: Capital budgeting is a process of evaluating a potential investment. Various factors such as initial…

Q: aluate input risk in project finan

A: Large-scale infrastructure projects underway throughout the world play an important part in the…

Q: How can the Income-Tax Rate be used in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: Describe the method of Investment Decision for a Nonsimple Project?

A: In a simple investment, cash flows change sign only one time. For example, negative cash flow in the…

Q: Describe the process of using the Income-Tax Rate in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: Illustrate the conceptual basis upon which the practice of financial project analysis is built?

A: Net present value It is a concept through which the financial project viability can be analyzed. The…

Q: What is project financing?

A: Project financing is an opportunity to finance long-term, nil, or restricted capital accessible to a…

Q: Determine the period necessary to recover both the capital investment and the cost of funds required…

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: When and under what conditions the cross over rate will be used will be an essential consideration…

A: Introduction: The process through which the corporation decides on the project investments that will…

Q: ) What are the factors affecting the discount rate used in project valuation?

A: Discount rate also called as Weighted average cost of capital is used for discounting future cash…

Q: What do we mean by the economic life of a project?

A: The time span for which an asset or a project generates profits for the owner is known as the…

Q: Why is it important to make the distinction between company required rate of return (WACC) and…

A: WACC is the weighted average rate of return. It is the average cost of funding for a company.…

Q: How can the Cash flow be considered to evaluate the economic meritof any investment project?

A: Investment projects are usually capital expenditure that includes different cash flows. Capital…

Q: How can we consider the Future Worth and Project Balance?

A: The question is based on the concept of evaluation of long term investment, future worth and project…

Q: Discuss the factors that must be considered in choosing the means of financing a project

A: Project financing is a means of obtaining funds for industrial projects, long-term infrastructure,…

Q: Describe the Incremental Analysis for Cost-Only Projects?

A: The incremental cost is the additional cost incurred for producing an additional one unit of a…

Q: What type of projects does the Payback method favor?

A: Payback method: It implies to a method of evaluating investment projects by computing the time, it…

Q: What is a true indicator of the project's profitability?

A: Answer: Capital budgeting is the whole project investment process and the decision of whether it…

Q: what is the cost of a project proposal and how is it structure to meet its goals

A: A cost of a project refers to the sum total of all expenditure to be incurred by an organization for…

Q: How capital expenditure(investment) analysis helps in focusing particular projects and program ?

A: Expenditure in the company can be divided into two parts. Revenue expenditures:- expenditure…

Q: Describe the concept of rate of return based on the return on invested capital in terms of a…

A: The term ROIC is used to calculate the profitability or return on invested capital that a business…

Q: What is a sunk cost, and if included in a project how should they be treated?

A: Sunk cost is the cost which is already incurred and it is not relevant for decision making. Examples…

Q: Explain Financing Project Development?

A: Introduction  Project finance refers to the funding of long-term projects, such as public…