This website uses cookies to ensure you have the best experience. Learn more

Bf Assignment

950 words - 4 pages

AF3313 Business Finance
Individual Assignment

Q1)
For the NPV accounting method, the advantages are, firstly, it considers the time value of money, it will discount the cash flows properly in order compare different cash flow and make correct decision. Secondly, it use cash flows and also all the cash flows of the project will be considered. Also, it will consider the risk of future cash flows through the cost of capital. However, as an investment criterion, NPV wholly excludes the value of any real options that may exist within the investment. For example, it does not consider how long is the project pay back which may be the important consideration when a company decide whether to ...view middle of the document...

For the Internal Rate of Return method (IRR), the advantages are, firstly, it uses cash flow and all cash flow is considered, the discount rate was regarded as the required return rate and to be compared with the IRR. Secondly, the criteria of IRR is clear and reasonable which is accept the project when IRR is higher than or equal to the required return rate. It is a simple way to communicate the value of a project to someone who does not know the estimation details.

However, it has a number of problems when using IRR as an investment selection criteria. First, IRR has a scale problem, it only consider the per year return rate instead of the actual value of the project which means that Higher IRR does not guarantee higher NPV because the project with a higher IRR could be of a smaller scale. Second, multiple IRRs may be occurred when there are “N” sign changes in cash flows over life of project. Also, IRR may not exist due to the mathematical problem. Moreover, there is also timing problem when using IRR method, it will hard to make decision when choosing mutually exclusive projects.

For Profitability Index (PI) method, the advantages are easy to understand and communicate. Also, all cash flow are considered and it is useful when available investment funds are limited. However, it similar with IRR, it also ignores sizes of cash flows and has a scale problem.

Q2)
In this question, we know that there are 2 stocks in the market, Stock A & Stock B. Stock A has a higher expected return which is 10% and a lower standard deviation which is 8% per year. On the contrary, Stock B has a...

Other Papers Like Bf Assignment

Managing The Workforce Essay

2918 words - 12 pages assignment. What it mattered to me was that I learned something new that could be very useful to me in the future.Have the referent increase inputsThis would happen when the one that gives more to the situation gets the most credits and not the least ones. An example from my performances at AUK is when this semester me and this girl are always being active in Lit. and Cultural Studies class, but when we hand it in the essays she got higher grade

Aproaches to Counselling Essay

3260 words - 14 pages association of unconditional stimuli| | |to another | | |BF Skinner : Operant conditioning | | |REBT | | |CBT

Health Research in Region 2

5007 words - 21 pages Breastfeeding performance, there is a high accomplishment of Exclusive Breastfeeding of 91.21% compared to those initiated or counseled for BF, which is 68.90%. It is very surprising that our performance to deliveries has much higher result, 75% than the national of 67.8%. METHODOLOGY The process of setting the research agenda for region 02 comprised of three (3) phases: 1. The analysis of the health situation/ health programs 2. Identification

Should I Give Up

5383 words - 22 pages cherish you -I’ll be Wow naman ganda ng song choice nila pero bakit ganun yung kay Liam “I do Cherish You” at “True” siya kaya ang pumili nun at dedicate niya dun sa girl. Pero okey lang favorite ko naman yung song na napili niya sana akin na lang “Pres. Ayos na poo ang group 1 . Ready na po sila at saka pati na rin po lahat ng bandang kasali ay nasa respective room assignment na

Using Km and Dm to Improve Business Performance

5628 words - 23 pages Knowledge Management: A Literature Review’, International Journal of Engineering Science and Technology (IJEST), Volume 3, No.2, pp936-937, ISSN: 0975-5462. Bacon, D. (2002). ‘Marketing’, In: Klosgen, W. and Jan, Z. (ed) Handbook of Data Mining and Knowledge Discovery. New York: Oxford University Press. 715-725. Bender, S. and Fish, A. (2000), ‘The Transfer of Knowledge and Retention of Expertise: The Continuing Need for Global Assignment

Freedom And Responsibility

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

Related Essays

Brown Forman Essay

1062 words - 5 pages /1324513867025.html 6.http://www.slideshare.net/smscarbr/brownforman-corporation-strategy-assignment 7.http://www.forbes.com/ 8.http://www.cnbc.com/ "Brown-Forman: Major Holders- Yahoo! Finance" <http://finance.yahoo.com/q/mh?s=BF-A+Major+Holders>

Dehydration Essay

1246 words - 5 pages SCI 241 – Week 5 Assignment: Dehydration Christina Doner Our bodies are made up of mostly water. What does that mean? Exactly how it sounds. Water is found in every part of the body; from tissue, to muscle, and in the bone. Bodies depend on water for lubrication, protection, oxygen in the blood (which too is mainly water), in addition to the delivery of nutrients throughout the body. Consequently, water is essential to the survival of

Strategic Management Essay

3454 words - 14 pages This assignment shall be analysing the case study on Michelin .An exploration of Michelin's strengths and weaknesses both internally and externally, and most importantly identifying the management challenges faced by Michelin. This assignment shall thoroughly address how the challenges can be solved using the principles that were mastered during the study of Strategic Management. To find the strengths of Michelin, one will be looking at

Critically Reflective Account Of My Experience Of Mentoring And Assessing A Student In Practice

2651 words - 11 pages assignment I will give an account of my experience while mentoring and assessing a 2nd year student nurse during a six week placement.  I will critically reflect on the experience, looking at learning theories, giving feedback and the importance of reflecting on experiences in practice. For reasons of confidentiality I will refer to my student as Sam.   A mentor can be defined as a nurse that has reached the Nursing and Midwifery Councils (NMC