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What is the interest rate at which the sum of PVs of the expected cash inflows or receipts is equal to the total PV of the investment outlay?
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What is Pay back period method?
Method of evaluating investment opportunities and product development projects on the basis of the time taken to recoup the investment. This period is compared to the required payback period to determine the acceptability of the investment proposal. In contrast to return on investment and net present value methods, the cash inflows occurring after the payback period are not included in this method. Formula: Payback period (in years) = Initial capital investment ÷ Annual cash-flow from the investment.
A project has an initial cost of 52125 expected net cash inflows of 12000 per year for 8 years and a cost of capital of 12 percent What is the projects MIRR and What is the projects PI?
The MIRR of this project is 13.89% and the PI is 1.13.
What is the definitionof revenue recognition?
Revenue recognition is including inflows in financial statement when all when ownership and control has been passed to another person and that inflows is probable based on a transaction
Differentiate Operating activities to Investing activities and to Financing activities?
Transactions and events that directly affect a firm's cash inflows and outflows, and determine its net income. Cash inflows result from sales of goods or services, sale of firm's stock (shares), and from income earned on investments. Cash outflows result from equipment and inventory purchases, interest and principal payments on loans, salaries, dividends, and various other costs and expenses
Role of foreign institutional investors in Indian stock market with special reference to sensex tumbling?
Foreign Institutional Investors (FIIs) play a significant role in the Indian stock market, including the movement of the Sensex. Here's an overview of their role and their impact on market dynamics: Investment Inflows: FIIs are institutional investors from overseas who invest in Indian financial markets, including stocks. Their investment inflows can have a considerable impact on market liquidity and overall demand for Indian equities. Market Participation: FIIs are active participants in the stock market, buying and selling shares based on their investment strategies and market outlook. Their trading activities can influence stock prices and contribute to the overall market sentiment. Liquidity and Volume: FIIs often bring liquidity to the market due to the large capital they invest. Their participation can increase trading volumes, enhance market efficiency, and improve price discovery. Market Sentiment and Confidence: FIIs' investment decisions and actions can influence market sentiment and investor confidence. Positive or negative outlooks from FIIs may lead to increased or decreased investor participation, impacting market trends. Foreign Capital Flows: The entry or exit of FIIs' capital in the Indian stock market can affect the overall foreign capital inflows into the country. Changes in foreign investment trends can impact currency exchange rates and the balance of payments. Sensex Movement: The Sensex, a widely followed stock market index in India, represents the overall performance of the Indian stock market. FIIs' buying or selling activities, along with other domestic and international factors, can contribute to the movement of the Sensex.
Payback period concept is best explained by what?
Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment. It is one of the simplest investment appraisal techniques.
What is payback method on investment appraisal?
In payback period of investment appraisal method all cash inflows and outflows are analysed and find out that in how many years investment proposal will earn the invested money.
What is the formula for the payback period?
Formula for the Payback Period. Payback period = Initial investment / Annual Cash inflows
What factor do the Global capital markets are influenced by?
Fii's Inflows or outflows, Interest Rates and Retail Participation
How to report Collection of interest on statement of cash flows?
collection of interest is part of cash flow from operating activities and cash inflows or outflows from it is shown in this section.
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 courses do you need to be an accountant?
The firm's financial analysts have developed pessimistic most likely and optimistic estimates of the annual cash inflows associated with each project.ÂProject AProject BInitial investment (CF0)$8,000$8,000OutcomeAnnual cash inflows (CF)Pessimistic$ 200$ 900Most likely1,0001,000Optimistic1,8001,100
What kind of returns are Dubai real estate investments fetching currently I am considering making a home investment here.?
Investment in dubai real estate currently is offering a great path of capital appreciation and returns and is active with significant amount of fund inflows. Your decision to make an investment here would be worth it.
What are cash inflows?
Cash inflow is the money flowing in and out of a business within a given period of time. this can be predicted using a spreadsheet which will indicate the effects of changing fifures. Example of Cash inflow is: ■ Sales - amount to be received from selling good or service. ■ Cash from debtors. ■ Capital. ■ Lone from bank.
What is Pay back period method?
Method of evaluating investment opportunities and product development projects on the basis of the time taken to recoup the investment. This period is compared to the required payback period to determine the acceptability of the investment proposal. In contrast to return on investment and net present value methods, the cash inflows occurring after the payback period are not included in this method. Formula: Payback period (in years) = Initial capital investment ÷ Annual cash-flow from the investment.
If the compounding rate becomes lower and lower the future value of inflows approaches .?
the present value of the inflows
What is conventional projects?
A project with a negative initial cash flow(cash out flow),which is expected to followed by one or more future positive cash flows(cash inflows) is called conventional project.
