Cut off Rate:
It is the minimum rate that will be received by investor, when he invests his money. It is just similar to cost of capital or return on investment. However it is not sure that investor will invest his money at cut off rate since, investor will deeply examine his investment proposals with distinct capital budgeting methods. One of significant method is IRR in which cut off rate is compared with internal rate of return and when any project’s IRR will more than cut off rate, then that project is accepted.
Many other methods like NPV and P.I. in which we use cut off rate for computing the present value of cash inflows and cash outlay.
Following are the main factors that affect cut off rate's determination:
1. Amount of Investment:
Cut off rate is the standard rate and it influences investment decisions. The amount of investment influences cut off rate’s determination. When investment amount is very high in any investment projects, then its cut off rate will be greater than 10 percent.
2. Period of Investment:
When any investment project offers to pay the amount of investment in installments, then cut off rate will be much small however when investor has to pay all amounts in one installment, then cut off rate might be much high.
3. Risk factor:
When there is high risk with investment, then cut off rate will be very high. When there is no risk of money, then investor can spend the money at much low cut off rate.
Latest technology based Finance Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Finance help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Finance, project ideas and tutorials. We provide email based Finance help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Finance. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Finance Homework help and assignment help services. They use their experience, as they have solved thousands of the Finance assignments, which may help you to solve your complex issues of Finance. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
www.tutorsglobe.com offers software design process homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
Theory and lecture notes of Coefficient of Determination all along with the key concepts of coefficient of determination, Coefficient of Non-Determination, Standard Error of Estimate. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Coefficient of Determination.
tutorsglobe.com climatic factors assignment help-homework help by online environmental factors tutors
Diagrams might be of different types, One-Dimensional Diagrams,Two-Dimensional Diagrams, Three-Dimensional Diagrams, Pictograms, Cartograms or Map Diagrams. Costing data are usually presented by one-dimensional or two-dimensional diagrams.
tutorsglobe.com functions of plasma membrane assignment help-homework help by online cell membrane tutors
Theory and lecture notes of Short-Run Aggregate Supply all along with the key concepts of short-run aggregate supply, Money Stock, Money Market, LM Curve. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Short-Run Aggregate Supply
www.tutorsglobe.com offers reactions of amines homework help, reactions of amines assignment help, online tutoring assistance, organic chemistry solutions by online qualified tutor's help.
tutorsglobe.com formation of catecholamines assignment help-homework help by online protein metabolism tutors
www.tutorsglobe.com offers theory of demand homework help, law of demand homework help, demand curve question's answers, assignment help and theory of economics and online tutoring assistance.
Reflection at Curved Surfaces tutorial all along with the key concepts of Images Formed by Curved Mirrors, Convex mirror, Magnification, Mirror Formula, Image Formed by a Concave Mirror when the Object is between the Principal Focus F and the Mirror
tutorsglobe.com preparation of journal entries assignment help-homework help by online accounting basics tutors
Air-borne nematode tutorial all along with the key concepts of Enterobius vermicularis, human pin-worm, Morphology of Enterobius vermicularis, Life cycle of Enterobius vermicularis
picture is not in centre; sound ok, pincushion effect, barrel shaped picture, neck shadow, tilted picture, picture bend in corners, a bright spot in the centre of the screen, total sync. loss, no raster (or) no light on the screen; sound ok, insufficient brightness (or) dark picture.
Blood and Tissue protozoa tutorial all along with the key concepts of Trypanosome, Trypanosomiasis, Leishmania, Leishmaniasis, Plasmodium, Malaria, Babesia, Babesiosis, Toxoplasma and Toxoplasmosis
Modern Classification of Fungi tutorial all along with the key concepts of Amplification of the Classification of Fungi, modern classification of fungi and Higher fungi
1957145
Questions Asked
3689
Tutors
1485800
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!