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.
tutorsglobe.com difference between chemical and nuclear reactions assignment help-homework help by online nuclear reaction tutors
tutorsglobe.com xenon fluoride compounds assignment help-homework help by online noble gases tutors
tutorsglobe.com money supply assignment help-homework help by online money tutors
signal generator is employed to transmit the small ranges of waves. it is also termed as am transmitter.
Revenue from contracts for services might also be identified in stages. Assume a consultancy business has a contract to install a new computer system for the government that will take various years to complete.
tutorsglobe.com description of a flower assignment help-homework help by online flower-a metamorphosed shoot tutors
tutorsglobe.com transgenic microbes assignment help-homework help by online biotechnology tutors
build up a single phase, single layer wave winding for a 4 pole, 24 slot ac machine.
Classification of algae tutorial all along with the key concepts of PROKARYOTIC ALGAE, EUKARYOTIC ALGAE, Division Cyanophyta, Division Chlorophyta, Division Phaeophyta, Division Rhodophyta, Division Xanthophyta, Division Euglenophyta, Division Dinophyta, Division Bacillariophyta
tutorsglobe.com management of marketable securities assignment help-homework help by online working capital management tutors
software engineering assignment help is the top-notch online service for students by qualified tutors to secure a++ at reasonable prices!
www.tutorsglobe.com offers Piece Rate Incentive Plan homework help, assignment help, case study, writing homework help, online tutoring assistance by accounting tutors.
www.tutorsglobe.com offers answering questions to income elasticity of demand, types of income elasticity, economics assignment help - homework help.
Consequences of the First Law tutorial all along with the key concepts of Energy Equation, T and V Independent, T and P Independent, Gay-Lussac-Joule Experiment, Joule-Thompson Experiment, Reversible Adiabatic Process
chemistry of important industrial gases tutorial all along with the key concepts of hydrogen, preparation of hydrogen, uses of hydrogen, oxygen, preparation of oxygen, nitrogen, preparation of nitrogen, chlorine, preparation of chlorine
1940095
Questions Asked
3689
Tutors
1451720
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!