Describe the project-screening tool method used to evaluate the investment projects?

Q: Determine the internal rate of return of a project?

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: Calculate Net Present Value and Actual Rate of return for both the projects.. How will you evaluate…

A: Net present value of the project means difference of present value of all expected cash inflows from…

Q: discusses the acronym TELOS which provides guidance for accessing project feasibility. The term…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: Describe the Project selection rules under the IRR criterion?

A: IRR (Internal rate of return) is one of capital budgeting techniques which is used to evaluate the…

Q: Calculating Net Present Value of a project is an application of which technique: a. SWOT Analysis.…

A: In order to determine the profitability of the projected investment, Net present value is…

Q: To estimate project value, FCF should be computed at

A: Step 1 The income that an organization receives after a cash outflow is called a free cash flow. It…

Q: Discuss which tools you would use to decide whether a project is worthy of financing? Also,…

A: net present value is the tool used to decide that a project is worthy of financing net present value…

Q: Required: a) Compute the project profitability index and Net Present Value for each investment…

A: In this question Net present value is already been calculated so the next step is to calculate the…

Q: Explain Project Feasibility and Profitability?

A: It is a study containing an itemized portrayal of the project, trailed by a lot of various…

Q: What are the factors affecting the discount rate used in project valuation?

A: Higher discount rate provides less value and lower the discount rate higher the value of the…

Q: Any investment project carries a variety of risks. Outline possible ways through which the risk…

A: An investment project could be for introduction of new product line in the business or capital…

Q: importance of the Technique

A: Capital budgeting refers to the process undertaken by the business for evaluating the projects or…

Q: Describe the methods of determining the Project Risk?

A: Project risk is an uncertain event or circumstance that affects at any rate one objective of a task,…

Q: a. Determine the payback period of each project. b. Which project is acceptable based on payback…

A: Payback period = (Year of last negative cash flow+(Absolute value of last negative cash flow/Next…

Q: Why is risk incorporated into capital budgeting and how is it incorporated into the process of…

A: Capital budgeting is the process of evaluating different investment projects that require capital…

Q: Describe the concept applied to the creation of an investment project portfolio?

A: The question is based on the concept of creation of portfolio for investment , which is combination…

Q: How is the project profitability index computed, and what does it measure?

A: Profitability Index Profitability index is define as the ratio of net present value of cash inflow…

Q: How are project classifications used in the capital budgeting process?

A:

Q: aluate input risk in project finan

A: Large-scale infrastructure projects underway throughout the world play an important part in the…

Q: Describe the method of Investment Decision for a Nonsimple Project?

A: In a simple investment, cash flows change sign only one time. For example, negative cash flow in the…

Q: Describe the process of using the Income-Tax Rate in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: Illustrate the conceptual basis upon which the practice of financial project analysis is built?

A: Net present value It is a concept through which the financial project viability can be analyzed. The…

Q: Determine the period necessary to recover both the capital investment and the cost of funds required…

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: how to assess financial support project whether there is a need to conduct a financial analysis.…

A: Finаnсiаl  аnаlysis  is  the  process of business evaluation.  It reviews past financial performance…

Q: Selection of Project Time Value of Money Investment Criteria

A: Selection of Project is based on certain factors which are sub-categorized as- mission, process,…

Q: ions used in the

A: Before making any investment the analysis of the future outcomes becomes necessary. Capital…

Q: Does the Analysis Period differ from Project Lives? Explain how?

A: In a financial term, the Analysis Period is a period of financial analysis of financial statements…

Q: Which is the most important breakeven in the analysis of a project?

A: Projects could be analyzed by using net present value (NPV) method. In this method, projects are…

Q: What is the estimated Internal Rate of Return (IRR) of the project? Should the project be accepted…

A: Calculate the initial investment and operating cash flow for the given investment: Excel formula:

Q: How can we measure the true rate of any internal portion of an investment project?

A: The question is based on the concept of evaluation of different components of a project, it can be…

Q: Describe the Investment Decision for a Nonsimple Project?

A: Answer: In case of simple investment, changes to the cash flow sign can only be made once. For…

Q: Explain Initial Project Screening Methods?

A: Following are the Initial Project Screening Methods: The payback period alludes to what extent it…

Q: What are the methods of describing Project Risk?

A: The project risk is an unpredictable occurrence or situation that has an effect on at least one…

Q: Why is it important to make the distinction between company required rate of return (WACC) and…

A: WACC is the weighted average rate of return. It is the average cost of funding for a company.…

Q: .

A: a. Payback period b. Internal rate of return c. Profitability index d. Net present value

Q: How would you relate the financial statement analysis tools with project evaluation techniques…

A: Financial statement analysis is the type of analysis, which are used by external as well as internal…

Q: Discuss the use of sensitivity analysis as a way of evaluating project risk.

A: Sensitivity analysis Sensitivity analysis is said to be an evaluation tool that makes an assessment…

Q: make the distinction between c

A: Rate of return refers to the percentage of profit or loss on an investment for a specified period…

Q: Illustrate the main factors of Project Risk?

A: The project risk is defined as the uncertain event or condition that occurs mainly on positive or…

Q: Briefly describe the elements to consider when setting the interest rate for project evaluation?

A: The interest rate is the most important decision while considering the project because it helps to…

Q: How can we determine the required capital investment for an investment project?

A: Estimation of the capital investment is required because this is the foremost decision while…

Q: How capital expenditure(investment) analysis helps in focusing particular projects and program ?

A: Expenditure in the company can be divided into two parts. Revenue expenditures:- expenditure…

Q: Describe the concept of rate of return based on the return on invested capital in terms of a…

A: The term ROIC is used to calculate the profitability or return on invested capital that a business…

Q: Critically discuss the major process of capital budgeting and critically evaluate whether post…

A: The process of capital budgeting is a comprehensive and extensive process of investment appraisal in…