investment appraisal questions and answers pdf

Investment appraisal questions and answers pdf

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Published: 03.06.2021

Sanjay Bulaki Borad

3.2 Investment appraisal - questions

Payback & ARR - self-test questions

I want to ask how can i get ready for april attempt… I dont know how to get prepare myself for Financial management paper.. I m really nervous regarding thoery and all.

Sanjay Bulaki Borad

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3.2 Investment appraisal - questions

Internal Rate of Return, often simply referred to as the IRR, is the discount rate that causes the net present value of future cash flows from an investment to equal zero. IRR is derived by extrapolating 2 net present values that have been calculated using 2 random discount rates. You can start by selecting any 2 discount rates on a random basis that will be used to calculate the net present values in Step 2. It is important however not to select discount rates that are ridiculously distant from the IRR e. Although guessing the IRR before you have calculated it would be kind of hard, try your best to keep the two discount rates that you select within a reasonable range to improve the accuracy of your calculation. You shall now calculate the net present values of the investment on the basis of each discount rate selected in Step 1. The decision rule above will lead to the same conclusion as the NPV analysis where only one investment is being considered.

For a manager, one of the most difficult tasks that come with the position is staff evaluation. Customer Service. Cost Approach; Create a profile. The first session covers math used in the sales comparison approach.

The examiner's style is to test this area of the syllabus as partof a much larger question. Usually, a part c , or part d , you willhave to discuss or explain some of the key aspects and theirimplications. Stakeholder groups and corporate governance. Minicorp is a mining company. Its mission is to 'maximise profitsfor shareholders whilst recognising its responsibilities to society'. Itis considering a mining opportunity abroad in a remote country areawhere there is widespread poverty.


questions. They may be a different length or format to the answers expected value method of investment appraisal, 1(d) – on the calculation and use of the.


Payback & ARR - self-test questions

All rights reserved. Which one of the following best describes the Exports and Imports come under the purview of : Ministry of Finance. C Economic decision.

1 comments

  • Fifine B. 11.06.2021 at 09:44

    investment appraisal using discounted cash flow (DCF), is present value (NPV) of a capital investment project. In answers to Part b(i) of Question 1, very few.

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