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.
Terrestrial Biomes tutorial all along with the key concepts of Definition of Biomes, Classification of Biomes, Tropical Rain Forest, Tropical Seasonal Forest, Temperate Rainforest, Savannah and Desert
tutorsglobe.com kidney machines assignment help-homework help by online renal failure tutors
tutorsglobe.com antigenic determinants and epitopes assignment help-homework help by online secondary lymphoid organs tutors
TutorsGlobe.com Gas Law-I Assignment Help-Homework Help by Online Access Chemistry Tutors
www.tutorsglobe.com offers lanthanide homework help, lanthanide assignment help, online tutoring assistance, inorganic chemistry solutions by online qualified tutor's help.
tutorsglobe.com stimulation of hair cells assignment help-homework help by online ear tutors
tutorsglobe.com working of centrifugal pump assignment help-homework help by online centrifugal pump tutors
Simple Harmonic Motion tutorial all along with the key concepts of Oscillations of a Spring-mass System, Differential equation of simple harmonic motion, Solution of differential equation for shm, Phase and Amplitude, Time Period and Frequency, Velocity and Acceleration
tutorsglobe.com activation of adaptive immunity assignment help-homework help by online acquired immunity tutors
Immunology of Tissue Transplantation Types of Transplant, Autograft, Allograft and allotransplantation, Xenograft and xenotransplantation, Split transplants, Domino transplants, Mechanism of Graft Rejection and Prevention of Graft Rejection
tutorsglobe.com haptens assignment help-homework help by online antigens and antigen presentation tutors
The water heaters’ heating element converts electric energy into heat through which water inside the heater gets heated because of convection.
Derivatives of Carboxylic Acids tutorial all along with the key concepts of Properties of Carboxylic Acids, Acyl Chlorides, Acid Anhydrides, Esters, Preparation of esters, Amides, Preparation of Amides, Physical Properties of Amides, Uses of carboxylic acids and their derivatives
www.tutorsglobe.com offers addition reactions of dienes homework help, addition reactions of dienes assignment help, online tutoring assistance, organic chemistry solutions by online qualified tutor's help.
tutorsglobe.com sphygmomanometer assignment help-homework help by online medical lab methods tutors
1944903
Questions Asked
3689
Tutors
1477982
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!