Capital Budgeting: Net Present Value vs Internal Rate of Return (Relevant to AAT Examination Paper 4 – Business Economics and Financial Mathematics) Y O Lam Capital budgeting assists decision makers in a company evaluate multiple investments of the company’s capital. Capital budgeting is used to plan for the acquisitions of other companies‚ for the development of new product lines of business‚ for the expansion of the existing production plants or for the replacement worn-out equipment‚ and
Premium Net present value
Advantages & Disadvantage of a Joint Venture There are many good business and accounting reasons to participate in a Joint Venture (often shortened JV). Partnering with a business that has complementary abilities and resources‚ such as finance‚ distribution channels‚ or technology‚ makes good sense. These are just some of the reasons partnerships formed by joint venture are becoming increasingly popular. A joint venture is a strategic alliance between two or more individuals or entities to
Premium Partnership Corporation Joint venture
AMATH 546/ECON 589 Risk Budgeting Eric Zivot April 10‚ 2012 Outline • Portfolio Calculations • Risk Budgeting • Reverse Optimization and Implied Returns Portfolio Risk Budgeting • Additively decompose (slice and dice) portfolio risk measures into asset contributions • Allow portfolio manager to know sources of asset risk for allocation and hedging purposes • Allow risk manager to evaluate portfolio from asset risk perspective Portfolio Calculations Let 1
Premium Investment
Venture capital (VC) is financial capital provided to early-stage‚ high-potential‚ high risk‚ growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in‚ which usually have a novel technology or business model in high technology industries‚ such as biotechnology‚ IT‚ software‚ etc. The typical venture capital investment occurs after the seed funding round as growth funding round (also referred to as Series A round) in the interest of generating
Premium Venture capital Private equity
Capital Budgeting Luz A comas Strayer University Professor: Michael Hamuicka Financial Management – FIN 534 05/02/2011 Abstract Capital budgeting is one of the most important areas of financial management. There are several techniques commonly used to evaluate capital budgeting projects namely the payback period‚ accounting rate of return‚ present value and internal rate of return and profitability index. Recent studies highlight that financial managers worldwide favor
Premium Net present value Internal rate of return
ABSTRACT Kudler Fine Foods is an upscale specialty food store‚ servicing the fine food connoisseur from their three California locations. Kudler’s business objective is to maximize profits by offering the highest quality products to its customers at competitive prices. In reviewing the data on the organization through the website‚ this paper discusses the organizational culture and structure‚ the leadership style and its effects on the company and the employees’ motivation‚ and the external and
Premium Organizational structure Organizational studies and human resource management Organizational culture
JOINT VENTURES Joint ventures are business ventures formed by two or more companies to achieve aspecific‚ but limited‚ objective. An example would be the development of an offshore oil field‚ where a group of companies combines to build and operate a drilling platform and related pipeline. The project is owned equally by the affiliated enterprises and its management could be controlled either by one of the partners or by a separate management could be controlled either by one of the partners or
Premium Management Types of companies Organization
Budgeting A budget is a plan for your future income and expenditures that you can use as a guideline for spending and saving. Although many Americans already use a budget to plan their spending‚ the majority of Americans also routinely spend more than they can afford. The key to spending within your means is to know your expenses and to spend less than you make. A good monthly budget can help ensure you pay your bills on time‚ have funds to cover unexpected emergencies‚ and reach your financial
Premium Integer Income Expense
are the backbone of most successful families and the lack of one is the demise of not so successful families. Family budgets are equal opportunity beneficiaries. Having a family budget is and essential part of a healthy financial future. When budgeting‚ it pays to be mindful of needs versus wants. Needs are things that you must have in order to survive: foods‚ shelters‚ clothing‚ healthcare and transportation. For example‚ you need a home a roof over your head‚ a place to stay warm and dry. Your
Premium Finance Debt Family
New Product Kudler’s New Product Kathy Kudler has shown to be a strong business woman in the face of the gourmet grocer industry. To maintain that reputation Kathy has decided to expand services by both location and offerings. Kathy has researched the growing gourmet grocer market and has found a need in Canada. By researching the market Kathy found the one key product lacking is gourmet coffee. Ms. Kudler as well as other stakeholders of Kudler Fine Foods must enlist the marketing department
Premium Coffee