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How does a change in the cost of capital affect the project's internal rate of return?
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What is internal growth?
Internal growth happens when a small existing company expands the operations. Growth is compulsory to any kind of company because consumerâ??s taste change through time.
When does a company require to go for internal reconstruction?
i) When the capital structure of a company is complex and it is required to make it simple. (ii) When there are huge accumulated losses and it is required to write off these losses to depict a better position of the company. (iii) When a part of the capital is not represented by available tangible assets. (iv) When change is required in the face value of shares of the company so that they can become attractive for future investors. By the use of the word "required" one logical answer is when it applies for bankruptcy usually under Chapter 11.
How do you find the value of a capital stock purchased in 1981?
To obtain the current value of capital stock it should be brought to a finical advisor. The current value is based on the purchase price and the current stock value. It can change daily.
How can a change in interest rates affect the profitability of financial institutions?
A change in interest rates affects the cost of acquiring funds for financial institution as well as changes the income on assets such as loans, both of which affect profits. In addition, changes in interest rates affect the price of assets such as stock and bonds that the financial institution owns which can lead to profits or losses.
What is the effect on IRR if cost of capital decreased?
A change in the cost of capital will not, typically, impact on the IRR. IRR is measure of the annualised effective interest rate, or discount rate, required for the net present values of a stream of cash flows to equal zero. The IRR will not be affected by the cost of capital; instead you should compare the IRR to the cost of capital when making investment decisions. If the IRR is higher than the cost of capital the project/investment should be viable (i.e. should have a positive net present value - NPV). If the IRR is lower than the cost of capital it should not be undertaken. So, whilst a higher cost of capital will not change the IRR it will lead to fewer investment decisions being acceptable when using IRR as the method of assessing those investment decisions.
Internal and external factor that affects change?
Change agents affect change in and outside of the organization. A change agent can be a manager, or they can be the government.
Is the capital of Belgium going to change?
There are in 2012 NO plans to change the capital.
When was Climate Change Capital created?
Climate Change Capital was created in 2003.
Is a bug changing its color upon a predator a internal or external change?
Both, for the bug to exhibit an external change (its color), there must first be an internal change that triggers the color change (its color). Thus, the internal change facilitates the external change. The predator is an external factor that causes an internal reaction (maybe it's fear) in the bug, that internal reaction then triggers an external factor which is the change in color. Just a personal opinion.
How does a change in the required rate of return affect project's Internal Rate Of Return?
A change in the required rate of return will affect a project's Internal Rate of Return (IRR) by potentially shifting the project's feasibility. If the required rate of return increases, the project's IRR needs to be higher to be considered acceptable. Conversely, a decrease in the required rate of return could make the project's IRR more attractive.
When did the capital of Arizona change?
Phoenix became the Capital in 1899.
What are internal changes?
If you define something has having an inside an an outside, then an internal change is something that happens inside. For instance if a company reorganised its staff into new teams, that would be a internal change.
Why did the US change the capital of Russia?
The US did not change the capital of Russia, Russia is quite a large country and is not heavily influenced by other countries. When Russia did change its capital it was because there was a change in government in their own country not because of the US.
Is workforce an internal force of change?
Yes, it is.
What the the four factors of economic growth?
Physical capital, human capital, natural capital & technological change.
How do tornadoes affect climate change?
Tornadoes do not affect climate change. They may be affected by climate change, but how is yet to be determined.
How does physical change and chemical change affect mass?
Neither of them affect mass in a closed system.
