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What does NOT affect the present value of the tax deduction for depreciation expense used in the net present value of an investment?
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Should you consider depreciation in NPV?
Net present value calculation only considers the cash amounts and depreciation is not cash amount rather the related assets is counted in for net present value calculation. Depreciation is deducted once from net income to calculate the tax amount but after that it is added back.
Is form 16 and investment declaration form is same?
No. Details present in the Investment Declaration form will be present in the Form 16 document
In an investment evaluation scenario how do you calculate interest income and interest expense?
For starters, forget about Net Present Value. Look up for a new methodology called c2bii. The general idea behind this method, can be described as accounting on steroids.
What is a capital investment's net present value?
Widely used approach for evaluating an investment project. Under the net present value method, the present value (PV) of all cash inflows from the project is compared against the initial investment (I). The net-present-valuewhich is the difference between the present value and the initial investment (i.e., NPV = PV - I ), determines whether the project is an acceptable investment. To compute the present value of cash inflows, a rate called the cost-of-capitalis used for discounting. Under the method, if the net present value is positive (NPV > 0 or PV > I ), the project should be accepted.
What method of evaluating capital investment proposals uses the concept of present value to compute rate of return?
The method that uses the concept of present value to compute rate of return is called the Net Present Value (NPV) method. In this method, the cash inflows and outflows of a capital investment proposal are discounted to their present value using a discount rate. The NPV is then calculated by subtracting the initial investment from the present value of the cash flows. A positive NPV indicates a profitable investment, while a negative NPV suggests an unprofitable investment.
What is pv in excell?
The PV function is a financial function. It is used to return the present value of an investment based on an interest rate and a constant payment schedule. The syntax is a follows: PV( rate, number_payments, payment, [FV], [Type] ) Rate is the interest rate for the investment. Number_payments is the number of payments for the annuity. Payment is the amount of the payment made each period. If it is omitted, you have to enter a FV value. FV is optional. It is the future value of the payments. If it is omitted, it is assumed to be 0. Type is optional. It indicates when the payments are due. Type can be one of the following values: 0 for when payments are due at the end of the period, which is the default. 1 for when payments are due at the start of the period. If the Type parameter is left out, the PV function sets the Type value to 0.
Foreign investment policies of many economies have come along way since 1990's Briefly discuss as how the present plocy is different from the past?
I want know the defference between present policy of foreign investment and past policy of foreign investment
What is cash interest expense?
A cash interest expense is a cash amount that accrues interest. These types of expenses vary depending on the type of account and the money present in the account.
Record depreciation on the remaining truck it has an estimated residual value of 15000 and estimated useful life of eight years?
James' mom purchased a new truck for $39,310 four years ago. James, who is a mechanic, estimated that the truck's present value is $25,250. What is her depreciation? Formula: Depreciation = Purchase Price - Today's Value/Number of Years Owned
What is the present value of 200 if the investment rate is 6 percent?
It is necessary to have a value for the time.
Should you invest in Indian mutual funds at present?
Mutual fund investment is always risky. Read the terms and conditions very well before investment.
What are some Excel formulas that you might use or need if you were a financial planner?
Future value Present value Compound or simple interest Amortization/Depreciation
