Financial Management Question and answer
Financial Management Question and answer
What is Net Present Value ?
Net Present Value (NPV):Net Present Value is the difference between the present value of cash inflows and the present value of cash outflows .NPV is used in capital budgeting to analyze the profitability of a projected investment or project.
What is Interest Rate of Return ?
The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero.
What is Modified Internal Rate of Return (MIRR)?
MIRR is the Internal Rate of Return of an investment that modified to account for the difference between reinvestment rate and investment return.
What is Probability Index ?
An index that attempts to identify the relation ship between the cost and benefit of a proposed project through the use of a ratio calculated .
What is Pay Back Period ?
Ans:Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment.
What is working capital ?
Working capital is money available to a company for day today operation.
What is net working capital ?
Net working capital is the aggregate amount of all current asset and current liability .
What is financial statement ?
Financial statements are a collection of report about an organizations financial result financial condition and cash flows.
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What is Net Present Value ?
Net Present Value (NPV):Net Present Value is the difference between the present value of cash inflows and the present value of cash outflows .NPV is used in capital budgeting to analyze the profitability of a projected investment or project.
What is Interest Rate of Return ?
The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero.
What is Modified Internal Rate of Return (MIRR)?
MIRR is the Internal Rate of Return of an investment that modified to account for the difference between reinvestment rate and investment return.
What is Probability Index ?
An index that attempts to identify the relation ship between the cost and benefit of a proposed project through the use of a ratio calculated .
What is Pay Back Period ?
Ans:Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment.
What is working capital ?
Working capital is money available to a company for day today operation.
What is net working capital ?
Net working capital is the aggregate amount of all current asset and current liability .
What is financial statement ?
Financial statements are a collection of report about an organizations financial result financial condition and cash flows.
more
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