0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
How do you calculate purchase consideration under net asset method?
under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate
Methods of allocating joint production cost to joint products?
Following are methods 1 - Splitoff point method 2 - Net realizable value method
Which method of depreciation would you use if you were to receive a bonus which is based on net profit?
which method of depreciation to use when bonus is received that is based on net profit
What is the net realization value?
Net realization value is the price a company can get on sale or dissposal of any asset from balance sheet.
Why is net present value important to a project?
The net present value of money is a calculation which aims to define today's investment in terms of the value of money in the future. In order to evaluate the sheer financial aspects of a project, sometimes used as a basis upon which to either pursue a project, or drop it, the financial implications may be the deciding factors. The net present value exercise is commonly used simply to show due diligence in evaluating a project. From Wikipedia [edited]: "In finance, the net present value (NPV)of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows. In the case when all future cash flows are incoming and the only outflow of cash is the purchase price, the NPV is simply the PV of future cash flows minus the purchase price. NPV is a central tool in discounted cash flow (DCF) analysis, and is a standard method for using the time value of money to appraise long-term projects. Used for capital budgeting, and widely throughout economics, finance, and accounting."
What is the difference between the net present value and the discounted cash flow method?
cash method is when you get cash, method is when u give it
How do you calculate selling price of the business?
There are different methods to calculate selling price of business as follows: 1 - Net assets method 2 - Price earning method 3 - Discounted cash flow method 4 - Intrinsic value method
Payback period versus discounted payback period versus net present value versus profitability index?
discounted payback period
What are the various methods of valuation of shares discribe and illustrate net asset method of valuing shares?
They include; Intrinsic Value Method, Yield Method and Net Asset Method.
How do you calculate purchase consideration under net asset method?
under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate
What is normally used as the discount rate in the net present value method?
the net present value as determined by normal discount rate is 10%
What is the difference between payback and discounted payback?
Simple payback method do not care about the time-value of money principle while discounted payback period do take care of this principle in calculation.
What is a fisher rate?
Exchange of benefits in applying the net present value method
Does present values have value adding up property?
Net present value method has value adding-up property
What is the term 'discounted cash flow' in reference to?
A discounted cash flow is an estimate of what today's dollar will be worth tomorrow basically. All future cash flow can only be estimated. There is a mathematical formula that can be used to figure out if an investment has the potential to make money.
What is the absolute value of money?
Absolute value, also known as an intrinsic value, refers to a business valuation method that uses discounted cash flow (DCF) analysis to determine a company's financial worth. The absolute value method differs from the relative value models that examine what a company is worth compared to its competitors.
Discounted payback method?
A discounted payback method is a formula that is used to calculate how long to recoup investments based on the discounted cash flows of the investment. It is a variation of payback period or the time it takes to recover a project investment given the discounted cash flow it has.
