Risk Analysis in Capital Budgeting
Risk Analysis in Capital Budgeting There is also, of course, the situation of complete certainty. This relates to a decision over which the decision maker has complete control, and is…
Measurement and Decision-Making Under Discounted Cash Flow Techniques
Measurement and Decision-Making Under Discounted Cash Flow Techniques The discounted cash flow method determines the cash inflow and outflow over the asset’s lifetime. After that, a discounting factor is applied…
Measurement and Decision-Making Under Non-Discounted Cash Flow Techniques
Measurement and Decision-Making Under Non-Discounted Cash Flow Techniques Non-discounted cash flow (NDCF) project appraisal approaches are extremely easy to grasp. These methods need the fewer calculations and are simple to…
Estimating Cash Flow of Capital Budgeting Project
Estimating Cash Flow of Capital Budgeting Project Capital budgeting is the process of assessing and selecting long-term assets based on their costs and expected returns. The method establishes a framework…
What is Capital Budgeting? Principles, Process, Techniques
What is Capital Budgeting? Capital Budgeting play a vital role in the future profitability of a concern. The process of decisions to invest a sum of money when the expected…
Time Value of Money (TVM): Rationale, Concepts
Time Value of Money (TVM) The determination of an asset’s monetary value is one of the most important functions of financial analysis. This value is measured in part by the…
What is Financial Management? Objectives, Scope, Relevance
What is Financial Management? Financial management can be defined as the art and science of managing money. It is known that most individuals and organisations earn money in the form…
Functions of Chief Financial Officer
Functions of Chief Financial Officer Every organization has finance head as ‘Chief Financial Officer’. Division of responsibility has created post for this officer. This is also called ‘Director of Finance’.…
Functions of Financial Management
Functions of Financial Management Functions of Financial Management are: Estimating Financial RequirementsDeciding Capital StructureSelecting a Source of FinanceSelecting a Pattern of InvestmentProper Cash ManagementImplementing Financial ControlsUse of various control techniquesProper…
Scope of Financial Management
Scope of Financial Management Scope of Financial Management are: Estimating Financial RequirementDeciding Capital StructureSelecting a Source of FinanceSelecting a Pattern of InvestmentProper Cash ManagementImplementing Financial ControlsProper Use of Surpluses Estimating…