Explain how to calculate net realizable value.

Q: How can the Present-Worth Comparison be done?

A: The present worth method of comparison will diminish the cash flows of every choice to time zero by…

Q: Define actuarial rate of return

A: Definition: Actuarial rate of return is the expected value of losses of an insurance company that…

Q: Which are the Methods for Finding Rate of Return?

A: A Rate of Return (ROR) is the gain or loss of an investment over a certain period of time. When the…

Q: Explain the term Present Value of Perpetuities with an example?

A: Present value is the current value of a cash flow that can be occurred in future. Perpetuity is an…

Q: What is net present value?

A:

Q: What are economic resources?

A: Economic resources: Assets or services of an organization carrying some economic value which can be…

Q: Explain how did it get the NPV, the Economic Value Added (EVA), and the Market Value Added (MVA)

A: Capital budgeting is a process that is undertaken by an organization or business to evaluate…

Q: how present value is useful in economic decision making

A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…

Q: what is meant by the required rate of return

A: The return which is expected to be earned by investing in a security is known as Required Rate of…

Q: Explain the net present value formula and also explain what the net present value represents.

A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…

Q: What is net present value (NPV) profile?

A: Net present value profile is mainly the graphical representation of net present value of different…

Q: How do you calculate present value?

A: Present value:Present value (PV) refers to the current value of future money.

Q: What is meant by partitioning the internal rate of return? Why is this procedure meaningful?

A: Internal rate of return is defined as the annual rate of earnings on an investment and unlike income…

Q: Explain Estimating Development Cost and Interest Carry?

A: INTRODUCTION Estimating development cost in project management is the process of forecasting the…

Q: Explain the concept of a present-value analysis.

A: Present value (PV) is discounted value of future cash flows to be received at a particular rate of…

Q: e Internal rate of return

A: The following problem can be solved using XIRR function in excel.

Q: Explain an example how to calculate net present value.

A: Net present value method:   Net present value method id the method which is used to compare the…

Q: What do we mean by internal rate of return (IRR)?

A: Internal rate of return : Internal rate of return is one of the techniques used in capital budgeting…

Q: What is the definition of “actuarial present value”?

A: Accumulated Benefit Obligation: It is an inexact rate of a company's pension plan liability towards…

Q: What formula to use to find Payback Period and NPV? (in Excel)

A: NPV or Net Present Value is the present value of all net cash cashflow on a provided discount rate.…

Q: What is the net present value method?

A: Net Present Value Method: It is the present value of the annual cash flows and the project initial…

Q: Explain different terms are used to refer to rate of return?

A: Answer: Rate of return is nothing but the returns that are expecting on investments made by…

Q: calculate the internal rate of return

A: Information Provided: Discount rate = 10% Realisable Value = 20%

Q: What is internal rate of return (IRR) method?

A: NPV shows the excess of PV of all the cash inflows over the initial outlay of the project. It is a…

Q: Define real rate of return.

A: Real Rate of Return is defined as the rate that has been adjusted for rise in prices of commodities.…

Q: Describe the Methods for Finding Rate of Return?

A: Capital budgeting is the process a company follows to decide whether to purchase a fixed asset or…

Q: What is net present value (NPV) method?

A: Capital budgeting can be defined as the decision making process employed by businesses wherein, a…

Q: Describe the method of developing a Present Worth Distribution?

A: Present value or Present Worth of an investment or a project is the value of future cash flow…

Q: What should be done to apply rate-of-return analysis correctly?

A: Rate of return: It can be defined as the rate of interest that has been earned by the company on the…

Q: What is Net realizable value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: what is meant by Capitalized cost?

A: Capitalized cost is a cost which is incurred in purchasing the fixed asset or making the fixed asset…

Q: Discuss the advantages and disadvantages of the Net present value

A: Net present value is the method of capital budgeting that helps in determining the present value of…

Q: what is the total value

A: Introduction: The term perpetuity is also an annuity wherein the series of payments would continue…

Q: What is Economic Value Added ?

A: Economic value added is used for measuring the financial performance of a company based on the…

Q: please state and explain the computational steps of a Net Present Value (NPV) calculation

A: NPV is used in corporate finance in taking decision on whether to accept or reject any project or…

Q: Find the internal rate of return

A: Internal Rate of Return is the rate at which Present value of cash inflow is equal to present value…

Q: What is net present value? How does net preset value work?

A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…

Q: What is Net Present Value (NPV)?

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Explain an example how to calculate internal rate of return.

A: IRR is the return actually earned by the investor and discount rate is the return which the investor…