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You should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real companies. 1-...

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You should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real companies.
1- Examine and discuss the characteristics of Net present value (NPV) and the role that this method plays in capital investment decision making. ?
2-In addition, discuss the advantages of using this method instead of the other evaluation methods examined this week? (Please check lecture note attached for others methods)
Not: - this question are consist of TWO (2) parts please cover all these questions in this assignment(IN DEPTH) in order to my requirements too
Need about 500 words.
MY REQUIREMENTS:-
PLEASE READ ARTICLE AND BOOK ATTACHED BEFORE START WRITE THIS ASSIGNMENT.
  1. Chose a subtitle in you writing.
  1. It MUST important to use my ATTACHED FILES(ARTICLE AND BOOK) on references.

  1. PLEASE WRITE THIS ASSIGNMET ON DEPTH (GENERAL WRITING IS NOT ACCEPTABLE).
  1. Referencing (in text citation) should be evident in the discussions.
  1. Please you should choose examples from your own experience or find appropriate cases on the Web that you can discuss.

  1. Please don’t use more than one website on reference.
  2. Need at least 3-4 Reference(INCLUDE MY FILES ATTACHED.
  1. Please use Harvard style.

  1. Referencing (in text citation) should be evident in the discussions.
Answered Same Day Dec 21, 2021

Solution

Robert answered on Dec 21 2021
123 Votes
Introduction
The methodology through which the company is capable of investing the money profitably in
long term investments in return of series of future benefits over a given period of time is known
as Capital Budgeting.
The main characteristics of capital budgeting techniques are as follows:
ï‚· Cu
ent available money is exchanged in lieu of benefits in future.
ï‚· Investment in project for long term purposes.
ï‚· Benefits which will be received in future. (Brealey, 2003)
Net Present Value
The Net Present Value Method (NPV) is most commonly implemented and is considered as
dependable technique when taking decisions regarding capital investments. It is calculated by
educing the costs from the present value of series of future expected cash flows. Net Present
Value makes use of discounted cash flow method to compute the value of the project’s cash flow
in future. It is computed by discounting the inflows from the project over its life to calculate
whether the inflows are equivalent to the investment or exceeding the investment made. The
discount rate implemented in the calculation is the weighted average cost of capital of the entity.
The weighted average cost of capital...
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