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.
periodic table-gradations of atomic properties tutorial all along with the key concepts of electronic configuration, periodic table and atomic properties, ionization energy, electron affinity and electronegativity
Particle in Three-Dimensional Box tutorial all along with the key concepts of Definition of Particle in a Three-Dimensional Box, Zero point energy
Succession in Ecosystems tutorial all along with the key concepts of Ecological Succession, Primary Succession, Secondary Succession and Human Influence on Succession
tutorsglobe.com aspects of says law assignment help-homework help by online says law of market tutors
Theory and lecture notes of Graphs of Rational Functions all along with the key concepts of graphs of rational functions, homework help, assignment help, polynomials and rational functions tutors. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Graphs of Rational Functions.
Theory and lecture notes of Sequential Games all along with the key concepts of sequential games, Extensive Form, Subgame Perfection, Commitment. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Sequential Games.
tutorsglobe.com compensation point assignment help-homework help by online respiration tutors
ionic product of water tutorial all along with the key concepts of ph scale, why does pure water have a ph of 7, common-ion effect and application of common ion effect
tutorsglobe.com objections to darwinism assignment help-homework help by online darwinism tutors
www.tutorsglobe.com offers Control Abstraction homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
tutorsglobe.com pits assignment help-homework help by online cell wall tutors
tutorsglobe.com bio-war assignment help-homework help by online crop diseases and their control tutors
Study of populations tutorial all along with the key concepts of Concept of population, Population Attributes, Population size, Population density, Population Growth Rate, Age structure and population estimate
Structural organization and function of protozoans tutorial all along with the key concepts of Nutrition in Protozoan Animals, Locomotion in protozoa, Osmoregulation and Excretion, Mechanisms for Response, Reproduction and life cycles and Encystment
tutorsglobe.com biosynthesis of rna assignment help-homework help by online nucleic acid metabolism tutors
1946303
Questions Asked
3689
Tutors
1455658
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!