The internal rate of return (IRR) and the net present value (NPV) techniques are 2 investment decision tools that satisfy the 2 major criteria for the correct evaluation of capital projects. This criterion is that the techniques should incorporate the use of cash flows and the use of the time value of money. This makes them viable techniques for evaluating investment proposals. The Net Present Value is one of the techniques that are used by firms when evaluating which investment proposals to take
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gross margin and net margin. Discuss critically their respective advantages and disadvantages for use in business analysis and planning. The term Gross margin can be defined as the total revenue of a business or enterprise less the variable costs of that enterprise or business. It can be given in terms of per hectare in the case of crops and on a per head basis in livestock which can be derived from the totals. It is a good indicator of productive and economic efficiency. The term Net margin can be
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A Comparison of Sun ’s Java 2 Enterprise Edition (J2EE) and Microsoft ’s .NET Framework using the Porter ’s Five Forces Model of Competition Abstract: A Strategic Management Comparison of Sun ’s Java 2 Enterprise Edition and Microsoft ’s Dot.Net Architecture using the Porter ’s Five Forces Model of Competition. What will be compared is who are their competitors in their industry‚ barriers to entry for other companies that want to deliver enterprise business applications‚ threats of substitutes
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Net present value is defined as the total present value (PV) of a time series of cash flows. It is a standard method for using the time value of moneyto appraise long-term projects. Used for capital budgeting‚ and widely throughout economics‚ it measures the excess or shortfall of cash flows‚ in present value terms‚ once financing charges are met. The advantages of the NPV are following; first‚ it tells whether the investment will increase the firm’s value. Also‚ it considers all the cash flows‚
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What did Michael Eisner do to rejuvenate Disney? Specifically‚ how did he increase net income in his first four years? When Eisner joined Disney in 1984‚ he committed himself to maximizing shareholder wealth through annual revenue growth of 20%. Eisner took several steps to rejuvenate Disney. His plan was to build the Disney brand while preserving the corporate values of quality‚ creativity‚ entrepreneurship‚ and teamwork. To maintain Disney’s culture and to develop pride in the Disney tradition
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Internal Rate of Return (IRR) and Net Present Value (NPV) are both powerful tools used in business to determine whether or not to invest in a particular project; both methods have its pros and cons. If given a choice I would choose NPV‚ because of the potential to anticipate profitability. As it is assumed that the objective of a firm is to create as much shareholder wealth as possible for its owners through the efficient use of resources‚ the preferred method in determining whether or not to invest
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have been used to reduce the firm’s notes payable. Project Dunham’s income and balance sheet for 1996 assuming the bank grants Dunham a $675K note payable at 12 percent and no existing interest-bearing debt is retired. Dividends will be 50 percent of net income. Cash will be the balancing item. Calculate the firm’s 1996 minimum cash balance by assuming that the average cash balance between 1993 to 1995 is the required 1996 cash balance. Use any extra cash at the end of 1996 to retire notes payable
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The great shark debate: to cull or not to cull? The great shark debate continues in Australia as summer approaches. Shark bites on bathers and surfers are a particularly sensitive reality. These are personal and community-wide tragedies that implore us to find adequate solutions. The goal of everyone is to improve shark bite prevention and risk reduction while finding solutions that reflect the values of the public. Shark culling and shark hunts‚ as an acceptable government response to beach
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“Ahhhhh‚” Joshua yawned. He was starving‚ as he had just woken up from a long night’s sleep. “Joshua! You atlantic cod better come and join the family for breakfast! We are going to hunt for herring today‚” Joshua’s Mom‚ Caft called. Joshua was wide awake‚ herring was his favorite food. “Coming‚” he said as he swam to his parents. Joshua and his family then went hunting in the Bay of Biscay. They had a hearty breakfast of herring‚ crabs‚ and lobsters. After eating Joshua’s family wanted to swim
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(lampreys and hagfishes) and extinct armoured fishes known as ostracoderms‚ none of which has gill arches (bony frames for the gills); 2. Placodermi‚ extinct armoured fishes with jaws; 3. Chondrichthyes‚ the cartilaginous fishes‚ including sharks‚ rays and their allies‚ all of which have a predominantly cartilaginous skeleton; and 4. Osteichthyes‚ the bony fishes‚ including the great majority of food and game fishes. A number of aquatic invertebrate animals and groups have common names
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