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q what is primary financial purposethe primary financial purpose of a company is typically stated to be the maximisation of shareholder wealth and
q design a organisational strategythe objectives to which organisational approach relates depend on the relative power of different stakeholders
general limitations of net present value when applied to investment appraisalnpv is a generally used technique employed in investment appraisal but
q average cost of capitaleven though the director suggests that equity finance is appropriate given the amount of finance needed the amount alone
q define risk-adjusted discount ratesone technique in this heading is the assignment of investment projects to one of a set of risk classes all of
probability analysisthis engrosses the assessment of the probabilities of future events linked to an investment project if these events are universal
q sensitivity analysis of projectthis system measures the change in project npv arising from a fixed change in each project variable or measures the
in assessing project risk it is significant to be clear about the meaning of risk from an academic perspective risk demotes to a set of circumstances
q calculation of internal rate of returnthe company is accurate in its belief that npv measures the potential increase in company value of an
both irr and roce tenders a relative measure of return in percentage terms a feature that is seen as attractive to managers who may perhaps have
q define return on capital employedreturn on capital employed roce is as well called accounting rate of return distinctly irr roce uses average
q show example of internal rate of returnirr internal rate of return is a discounted cash flow investment appraisal method that calculates the
funding the investment by an issue of ordinary shares could tender several advantages to springbank plc gearing would drop to 47 3middot57middot4
any non-quantifiable factors you feel might influence the decision to accept the proposalnet present value methods are merely assessments of factors
choice of an appropriate discount ratethe difficulty with selecting a discount rate rests on whether the correct rate for the riskreturn has been
q problems and difficulties associated with forecastingwe have relied to a great degree on the forecasting of data in order to provide an evaluation
q limitations of the five year period of analysisa number of restrictions to the analysis potentially arise- the approach doesnt take account of
q non-financial factors for non-financial considerationsthere are several non-financial factors which possibly relevant to a decision to contract out
q primary restriction of making demandthe primary restriction of making demand forecasts lies in the fact that they are forecasts and hence their
q a ltd company has equity share capital of rs 500000 divided into shares of rs 100 each it wishes to gain further rs 300000 for expansion cum
q evaluate break-even production unitsrs manufacturing ltd budgets production of 300000 units at cost of rs10 each the fixed costs are rs20 00000 the
q determine the indicated market price per shareyour companys share is quoted in the market at rs20 presently the company pays a dividend of rs1 per
illustrate the general design of waste heat boilers the boiler system shall be made up of a fire tube type heat exchanger a steam drum with relief
what is the scope of waste heat boilersthis specification covers the minimum requirements for the design material selections fabrication testing and
explain management accountingmeaning amp definition management accounting is comprises of two words management and accounting it is the study of