What is the initial investment plus interest?

Q: Which is the accounting rate of return using the average investment?

A: Summary of the relevant information as provided in the question : cost of investment =    £…

Q: What is investment timing option?

A: Option with reference to investment or project refers a significant option that can affect the…

Q: What is the Remaining Capital Value (RCV)?

A: Salvage value is defined as the remaining value of the fixed asset that is expected to be recovered…

Q: what is the discounted payback period for the investment?

A: Payback Period is the calculation of periods or years within which cost of investment is recovered.…

Q: What are the absolute measures of investment worth?

A: There are various approaches that can be utilized to decide a value or worth for the venture. Net…

Q: What are the risks of investing in an ESOP?

A: ESOP stands for Employee Stock Ownership Plan. It is a plan that gives an ownership interest in the…

Q: How much is BBM investment

A: This is a partnership - admission of a partner question, where the new partner is admitted with…

Q: Why is it necessary to determine how long you can expect to reap benefit from the investment?

A: Individuals as well as firms often make investment and specify the time limit for which this…

Q: How to calculate Present Value Interest Factors?

A: PVIF is known as Present Value Interest Factor. PVIF refers to a factor that is very useful in…

Q: Define the term investment pool?

A: Answer: Investment pools are noting but an institutional entities that are pooled investment…

Q: How to Calculate Compound Interest Factors and explain with example?

A: It is interest ascertained based on the starting principal and frequently contains all the collected…

Q: What are investment returns?

A: Investment returns are a performance measure used to evaluate a speculation’s adequacy or to think…

Q: What is the total investment approach?

A: Total Investment Approach: In the Total Investment Approach, there is a risk-return tradeoff in the…

Q: What is investor-supplied capital?

A: A business might make a return on its invested capital that surpasses the cost of that capital.

Q: Explain the problem of a capital-investment?

A: For the financing of capital investment, generally, the company considers operating cash flow of its…

Q: Explain the investment pool?

A: Investment Pool: Investment Pool is the joint funds that is planned financial arrangements for a…

Q: What are the three components of the rate of return in order to earn any kind of investment?

A: Following are the three components of the rate of return in order to earn any kind of investment:…

Q: Which types of investments are valued at amortized cost? Explain the rationale for this accounting.

A:

Q: What are the characteristics of equity investment?

A:

Q: what is the formula for compounding interest?

A: Compound interest can be defined as the interest earned on principal amount and on all previous…

Q: Which are the several ways of defining the concept of rate of return on investment?

A: Answer: Return on investments is an instrument which can be used to calculate the company’s…

Q: What is the relation between the present value of an investment and time and interest rate?

A: The concept of present value of an investment and time and interest rate is an important concept of…

Q: When is a project in Need for an External Interest Rate?

A: When net cash flow that is generated by the project during the project’s life is reinvested, then…

Q: What is the relationship of risk to the investment?

A: There is a direct relationship between risk and return in investment decision making. It means…

Q: What are the measures of investment worth based on yield? What are they called?

A: Investment worth based on yield means that an investor is expecting certain income on an investment…

Q: What is present value interest factor?

A: The present value interest factor is a mathematical equation used to estimate today's value of money…

Q: What is the main determinant of the level of investment?

A: An investment is simply a financial instrument formed with the goal of allowing money to grow. One,…

Q: What will an investment or a series of investment be worth after a period of time?

A: The time value of money states that an amount of money is worth more now than it will be in the…

Q: Illustrate the market interest rate to find the net present worth?

A: Investors frequently find the present worth of the fund flows for the reason that savers receive the…

Q: How do you make an investment decision based on the IRR?

A: IRR is the return actually earned by the investor and discount rate is the return which the investor…

Q: What is investment strategy?

A: Investment strategies are generally used by the investors in order to protect themselves from any…

Q: What is the internal rate of return? How is it used? How does it relate to the concept of compound…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: What is investor-supplied operating capital?

A: Investor-supplied operating capital is the capital that is provided by the equity shareholders and…

Q: What is meant by investment yields?

A: Investment Yield:  It defined as Earnings or income which is earned on investment over the period of…

Q: What is future value interest factor?

A: Introduction: The future value is the value of single present amount accumulated at a rate of…

Q: What is return on investment?

A: Return on investment  is a financial ratio which is measured as net income divided by the cost of…

Q: WHAT IS THE EQUITY INVESTMENT?

A: Equity: Equity refers to that part of the company’s capital which is raised by issuing equity…

Q: What are Quoted Investments ?

A: Quoted investment: It is an accounting term for investment in share or debenture, which is quoted on…

Q: What is the Return on Invested Capital?

A: Return on invested capital is calculated or determined to know the efficiency of the company on…

Q: Describe the process of the Net-Investment Test?

A: The Net-Investment test is done to figure out if an investment is a 'Pure investment' or a 'Mixed…

Q: How is the CAPM (Capital Asset Pricing Model) related to valuation?

A: The relationship between systematic risk and expected return on assets, particularly equities, is…

Q: What is the portfolio investment concept?

A: Portfolio is a group of stock, shares and bonds owned by the investors. It is a combination of asset…

Q: What is a target capital structure?

A: Capital structure is the combination of debt and equity used by the company to finance its business.

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.