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Net present value (NPV) is superior to accounting rate of return (ARR) and payback period (PB) because it takes into account the time value of money by discounting future cash flows back to the present. ARR does not consider the time value of money and only focuses on accounting profits. PB only considers the time it takes to recoup the initial investment without considering the profitability of the investment over its entire lifespan.
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Would NPVs change if the WACC changed?
Yes, NPVs would change if the Weighted Average Cost of Capital (WACC) changed. A higher WACC would result in a lower NPV, while a lower WACC would result in a higher NPV. This is because the discount rate used in calculating NPV is based on the WACC.
The symbol Pb on the periodic table stands for?
Pb=Lead
What is the symbol pb?
lead Latin name plumbum shortened to Pb
How Many TB in A PB?
There are 1,024 terabytes (TB) in a petabyte (PB).
Why do you have to write Pb instead of PB?
In chemistry, chemical symbols are written with the first letter capitalized and subsequent letters in lowercase. This convention helps to clearly distinguish between elements. Therefore, the correct chemical symbol for lead is Pb, not PB.
Why is the NPV approach often regarded to be superior to the IRR method?
Why is the NPV approach often regarded to be superior to the IRR method?
Why is the NPV method superior to payback method?
How is the method superior to the payback method
Why is the NPV method superior to the Payback method?
How is the method superior to the payback method
Traditional methods of financial evaluation of projects?
two traditional methods: Average rate of return (ARR) and Payback (PB)...
How do you sort array in php without use of sort function?
$arr=array(2,5,4,6,7,8,1); for($i=0;$i<count($arr);$i++) { for($j=$i;$j<count($arr);$j++) { if($arr[$i] > $arr[$j]) { $temp=$arr[$i]; $arr[$i]=$arr[$j]; $arr[$j]=$temp; } } }
Are the expressions 'arr' and ' and arr' are same for an array of integers?
No arr refers to address of array &arr refers address of address of array but compiler treats arr and & arr, so even you place arr and & arr no error only warnings will be displayed.
What are the techniques used to make capital budgeting decisions in your organisation?
discuss the various methods adopted for a capital budgeting decision.
Are the expressions ARR and and ARR same for char20?
Yes, 'ARR' and 'ARR' are the same for char20. Whatever it means.
Does lower WACC equal lower NPV?
no it increases npv
Each project has an initial investment of Rs 150 million (Mn) and the Weighted Average Cost of Capital is 13%.Years Expected Net Cash flowsProject A 68,65,63,60Project B 74,76,73,71Calculate(i) Payback (ii) NPV (iii) IRR (iv) ARR?
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What do you mean by array overflow?
for example:int arr[3];arr[0] = 1; /* ok */arr[1] = 2; /* ok */arr[2] = 0; /* ok */arr[3] = -1; /* wrong */arr[-1] = -3; /* wrong */
What are odds of rolling 14 with 4 dice?
ways of getting 14 1,1,6,6 6 arrangements (1,6,1,6; 1,6,6,1; 1,1,6,6; 6,6,1,1; 6,1,6,1; 6,1,1,6) 1,2,5,6 24 arr. 1,3,4,6 24 arr. 1,3,5,5 12 arr. 1,4,4,5 12 arr. 2,2,4,6 12 arr. 2,2,5,5 6 arr. 2,3,3,6 12 arr. 2,3,4,5 24 arr. 2,4,4,4 4 arr. 3,3,3,5 4 arr. 3,3,4,4 6 arr. Total: 146 146*(1/6)4 = 0.1127... so slightly over 1/9
