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Q: Explain the Net Present Value Method of valuation?
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Explain why Net Present Value method is more famous academically while Internal Rate of Return method of evaluating investments is applied by most firms in practice?

What is presesent value


What is share valuation?

Share valuation is the process of defining in rational way how much the security is Worthy calculating the monetary value of the security. There are various methods of calculating security value but present value method is the proper and best ways of calculating security valuation. Because it recognize the time value of money one thousand shillings received today is worth more than one thousand received tomorrow. S.Nkanto


Tell me something about valuation of a bond?

Bond valuation has one fundamental principle. This principle is that the bond has a value that is equal to the present value of the expected cash flow that will occur in the future.


What are the different methods of share valuation which do not use capm?

The present stock value evaluation is one of the methods of share valuation which does not use CAPM.


What are the various methods of valuation of shares discribe and illustrate net asset method of valuing shares?

They include; Intrinsic Value Method, Yield Method and Net Asset Method.


Does present values have value adding up property?

Net present value method has value adding-up property


How does the corporate valuation model define total value of a company?

The corporate valuation model defines the total value of a company as the present value of its expected future cash flows. It takes into account the company's projected earnings, growth rate, and risk factors to estimate the cash flows that the company will generate in the future. By discounting these cash flows back to their present value, the model determines the intrinsic value of the company.


During inflation what is the best method to value the stock?

during inflation the best method to use inventory valuation that produces that produces that least amount of profit is


What are the Similarities between NPV and IRR?

They explain the time value of money 􀂃 Both useful in capital budgeting and investment valuation


Fair value through profit and loss?

Establishing the value of liabilities and assets on a balance sheet is known as fair value. It is a valuation method that is commonly used to find value of financial instruments.


What is normally used as the discount rate in the net present value method?

the net present value as determined by normal discount rate is 10%


What is the difference between the net present value and the discounted cash flow method?

cash method is when you get cash, method is when u give it