Net Present Value:
This is the method of capital budgeting that is considered better than pay back period technique and rate of return technique for evaluating the investment proposals or assets of various companies. In NPV method, we compute net present value of cash flows after removing present value of cash outflows from present value of cash inflows. This NPV is computed for each investment project. Only that investment project is acknowledged whose total present value will be high. Now, you can recognize what this technique is. In this technique, I have utilized the term present value. Devoid of knowing present value, you can’t compute net present value.
Definition of Present Value:
The Present value means today value of one dollar. This is as well value of money. Given money is one dollar. It might possible that the value of one dollar might increase after one year as:
A. Receiving of Interest on 1 dollar for 1 year.B. The value of money might increase fluctuations in the foreign exchange.C. Value of money might rise due to deflation in the world market. D. Even in inflation, prices will raise and we require 2 dollar rather than one dollar for buying similar quantity. This means trend of value of money will forever be upward.
Therefore, today received one dollar is very significant than what we obtain tomorrow and due to this reason, we fix a discount rate. This is the rate that we like. At this rate, we want to invest our entire money. On this rate, we can compute present value of one dollar payable or receivable yearly from present value table.
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 lines and angles homework help, lines and angles assignment help, online tutoring assistance, geometry mathematics solutions by online qualified math tutor's help.
tutorsglobe.com carbohydrates assignment help-homework help by online nutrition tutors
tutorsglobe.com ovulation and fate of the ovum assignment help-homework help by online functioning of female reproductive system tutors
The significant objectives of the uniform costing - To help for meaningful and valid cost comparison between the members, To locate and eliminate inefficiencies in the firm by measuring own efficiency in terms of industry generally and in terms of close rivals in particular.
We, at Numerical Analysis Assignment Help deliver the top-notch and plagiarism free papers timely and ensure impeccable grades at feasible prices.
Winding wire is solid wire, that to permit closer winding while making electromagnetic coils, is insulated just with varnish, than the thicker plastic or another insulation generally employed on electrical wire.
It is necessary to explain the accounting cycle in concise. The cycle starts with the happening of a transaction and ends along with the preparation of final accounts that is Profit and Loss Account and Balance Sheet.
dc video amplifier construction consists of a driver and an output amplifier. q1 works as a driver amplifier and q2 like output amplifier.
Overheads cost audit program - allocation of indirect expenditure over production, sales and allotment is logical and correct.
tutorsglobe.com anaerobic phase assignment help-homework help by online glycolysis tutors
difference between non automatic iron box and automatic iron box. there are five differenct between both of them.
Linear Momentum tutorial all along with the key concepts of Impulse, Newton's Laws of Motion, Conservation of Linear Momentum, Elastic and Inelastic Collision and Applications of Newton's Law
tutorsglobe.com limitations of the law assignment help-homework help by online equi-marginal utility tutors
Theory and lecture notes of Reality of Economic Growth all along with the key concepts of Industrial Revolution, Longest-Run Economic Growth, Economic Growth through Deep Time, End of the Malthusian Age, Demographic Transition. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Reality of Economic Growth.
tutorsglobe.com imperfect information assignment help-homework help by online intermediate microeconomics tutors
1956286
Questions Asked
3689
Tutors
1458369
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!