What is an internal rate of return and what advantages and disadvantages are accrued by using it to evaluate projects

Q: How would you compare two different projects using the net present value method?

A: Net Present Value: It is the present worth of the project's initial cost and the cash flows.  Hence…

Q: Determine the internal rate of return of a project?

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: How much is added by project Novi to the value of HolyCow?

A: Valuation of a project is on the basis of discounted value of future cash flows.  Net Present Value…

Q: How can we Evaluate a Single Project: For a simple investment?

A: Following are the ways in which a single project can be evaluated: Present worth: Present worth is…

Q: Why do you think CFOs tend to look at strategic concerns before they look at the NPV of a project?…

A: Net present value (NPV) is used by analysts and investors to evaluate the profitability of a project…

Q: The benefit cost ratio must be greater than or equal to ______for the project to be economically…

A: The Benefit-Cost ratio is found by Dividing the Net Present Value of Benefits of the Project by the…

Q: Calculating Net Present Value of a project is an application of which technique: a. SWOT Analysis.…

A: In order to determine the profitability of the projected investment, Net present value is…

Q: What is project financing? What are its advantages and disadvantages?

A: Project financing: It is a type of subsidizing for the most part foundation overwhelming,…

Q: Discuss which tools you would use to decide whether a project is worthy of financing? Also,…

A: net present value is the tool used to decide that a project is worthy of financing net present value…

Q: Required: a) Compute the project profitability index and Net Present Value for each investment…

A: In this question Net present value is already been calculated so the next step is to calculate the…

Q: Explain Project Feasibility and Profitability?

A: It is a study containing an itemized portrayal of the project, trailed by a lot of various…

Q: How the Income-Tax Rate to Be Used in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: what is pay back analysis in project management

A: Payback period is the time a project will take to payback the money spent on it.

Q: Can we use benefit-cost analysis to choose among alternatives in allocating funds for building…

A: Cost-benefit analysis refers to a process a company uses to analyze its decisions. In a cost-benefit…

Q: What is the required rate of return on the project? (De

A: Capital Asset Pricing Model (CAPM) is a measure used for the measurement of systematic risk. It…

Q: a. Determine the payback period of each project. b. Which project is acceptable based on payback…

A: Payback period = (Year of last negative cash flow+(Absolute value of last negative cash flow/Next…

Q: How can a developer create value over and above their project cost when attempting to obtain…

A: Financing refers to a process of raising funds for business activities, and making purchases or…

Q: How is the project profitability index computed, and what does it measure?

A: Profitability Index Profitability index is define as the ratio of net present value of cash inflow…

Q: How are project classifications used in the capital budgeting process?

A:

Q: aluate input risk in project finan

A: Large-scale infrastructure projects underway throughout the world play an important part in the…

Q: Describe the project-screening tool method used to evaluate the investment projects?

A: Following are the project-screening tool method used to evaluate the investment projects: The…

Q: How can the Income-Tax Rate be used in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: Describe the process of using the Income-Tax Rate in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: Please state all criteria that can be used in the economic evaluation of projects. Explain the…

A: Criteria of evaluation of projects: 1 Analysis of cost required for projects. 2 Analysis of benefit…

Q: How can we determine the Incremental Analysis for Cost-Only Projects?a

A: Answer: In capital budgeting, incremental analysis is one of the most common decision making methods…

Q: sensitivity analysis as determined by NPV Breakeven sensitivity.  H

A: Sensitivity analysis refers to the model of finance that is helpful in determining the target…

Q: When making decisions, will there be problems with the IRR method for choosing which project to push…

A: Capital budgeting techniques include: Payback Period Discounted Payment Period Net Present Value…

Q: how to assess financial support project whether there is a need to conduct a financial analysis.…

A: Finаnсiаl  аnаlysis  is  the  process of business evaluation.  It reviews past financial performance…

Q: How to calculate the economic profit of each project?

A: Question 4 A: Economic profit is the profits arrived after deducting opportunity cost from the…

Q: Which is the most important breakeven in the analysis of a project?

A: Projects could be analyzed by using net present value (NPV) method. In this method, projects are…

Q: How can we measure the true rate of any internal portion of an investment project?

A: The question is based on the concept of evaluation of different components of a project, it can be…

Q: ) What are the factors affecting the discount rate used in project valuation?

A: Discount rate also called as Weighted average cost of capital is used for discounting future cash…

Q: What do we mean by the economic life of a project?

A: The time span for which an asset or a project generates profits for the owner is known as the…

Q: Why is it important to make the distinction between company required rate of return (WACC) and…

A: WACC is the weighted average rate of return. It is the average cost of funding for a company.…

Q: Discuss the factors that must be considered in choosing the means of financing a project

A: Project financing is a means of obtaining funds for industrial projects, long-term infrastructure,…

Q: hat are some of the difficulties that might occur with the application of an IRR approach in project…

A: Internal rate of return at which present value of cash flow is initial investment of the project and…

Q: What is the process of economically evaluating a project's desirability?

A: Project desirability is the desirability that differentiates the project from other ordinary…

Q: Describe the many different factors that need to be taken into account when deciding how to fund a…

A: Financing is the process of providing funds for the  commercial activities, purchases, or the…

Q: What type of projects does the Payback method favor?

A: Payback method: It implies to a method of evaluating investment projects by computing the time, it…

Q: Discuss the advantages and disadvantages of using the Internal Rate of Return method for analyzing…

A: For the purpose of evaluating the capital investments, the company will make use of different…

Q: How do you overcome the challenges posed by unequal lives of the projects being comparedand when…

A: Capital Budgeting is the evaluating techniques which evaluates the profitability of the long term…

Q: Describe one advantage and one disadvantage of the NPV methodology of evaluating proposed projects

A: The net present value of the NPV technique is that it considers the essential thought that a future…

Q: Explain Financing Project Development?

A: Introduction  Project finance refers to the funding of long-term projects, such as public…