NPV V/S IRR
NPV V/S IRR The following are the various dissimilarities between NPV and IRR – Size disparity problem NPV and IRR method give different ranking to...
Special Studies in Finance
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Capital Rationing
Capital Rationing The capital rationing refers to the situation in which the firm has more acceptable investments requiring a greater amount of finance than is...
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Discounted Cash Flow Methods
Discounted Cash Flow Methods The methods of appraising capital expenditure proposals can be classified into two broad categories Unsophisticated or traditional Sophisticated or time adjusted...
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Concept of Capital Budgeting
Capital Budgeting: Capital budgeting is the process of generating, evaluating, selecting and following-up on capital expenditure projects. The term Capital budgeting is used interchangeably with...
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Profit concepts for profit planning
The different profit concepts employed for profit planning with budgeting are as follows: Gross profit – this is the amount of profit earned on...
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Explain The Role Of Finance Head As Conflict Manager
Conflict of goal between management and owners: Agency problem A characteristic feature of corporate enterprise is the separation between ownership and management as a corollary...
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FM Objectives
Clear objectives are required for wise decision-making. Objectives provide a framework for optimum financial decision-making. In other words they are concerned with designing a method...
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Profit maximization decision criteria
Profit maximization decision criteria: Under this approach, actions that increase profits should be undertaken and those that decrease profits are to be avoided. In...
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Wealth maximization decision criterion
Wealth maximization decision criterion: This is also known as value maximization or net present worth maximization. The focus of financial management is on the value...
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Du Pont control chart
Du Pont control chart: Origin – A system for management control has been designed which is popularly known as the Du Pont Chart system of...
