Internal Rate of Return (IRR)
by IRR is essentially the rate at which the present value of a project’s future cash inflows equals the present value of its outflows, or initial …
Tag: Leverage
Determination of Potential Credit Policy including Credit analysis, Credit Standards, Credit Period, Credit Terms, etc.
Credit Analysis Credit analysis is a process of drawing conclusions from available data (both quantitative and qualitative) regarding the credit – worthiness of an entity, and …
Objectives of Cash Management
The Cash Management is concerned with the collection, disbursement and the management of cash in such a way that firm’s liquidity is maintained. In other words, it …
Cash Management Models
Cash Management Model # 1. William J. Baumol’s Model: William J. Baumol developed a model (The Transactions Demand for Cash: An Inventory Theoretic Approach) which is usually …
Point of Indifference
Point of Indifference is a crucial concept in corporate finance and capital structure decision-making, particularly when firms are evaluating financing alternatives. It refers to the …
Excel Application in Analyzing Project
Microsoft Excel is one of the most powerful and versatile tools for project analysis in business and finance. It allows businesses to perform various forms …
Calculation of NPV and IRR
Net Present Value (NPV) This is one of the widely used methods for evaluating capital investment proposals. In this technique the cash inflow that is …
Capital Budgeting Decisions
Capital budgeting, also known as investment appraisal, refers to the process by which a company determines and evaluates potential large-scale investments or projects. These projects …
Cash Flows as Profit and Components of Cash Flows
Cash Flow represents the money that flows into and out of a company over a period of time. Cash flow can be generated from various …
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