7.WACC (Weighted average cost of capital) — by Unknown on

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The WACC is cost of the financing for the firm. A firm can be financed by 2 main sources, the debt or cost of debt (borrowing from a back or...

6. Alternative Investment appraisal methods 1. The NPV vs the IRR. — by Unknown on

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First of all we are going to define the concept of NPV and IRR. Then we will see when we should we use NPV or IRR. 1.Net present Value (NPV)...

5. Alternative Investment appraisal methods 1. The NPV vs the IRR. — by Unknown on

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First of all we are going to define the concept of NPV and IRR. Then we will see when we should we use NPV or IRR. 1.Net present Value (NPV)...

4. Quick review to Mathematical finance — by Unknown on

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Annuity An annuity or also called payments (depending on the real situation)  is basically a constant payment for a period of time. Therefor...

3. Payback period and discounted payback period — by Unknown on

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The Payback Period is the length of time it takes for the project’s cash flows to equal its investment. Decision Rule: Undertake the project...

2. Profitability Index & Yield Index — by Unknown on

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1.Profitability index  Profitability index is an investment appraisal technique calculated by dividing the present value of future cash flow...

1. The NPV vs the IRR. and MIRR vs IRR — by Unknown on

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 First of all we are going to define the concept of NPV and IRR. Then we will see when we should we use NPV or IRR. 1.Net present Value (NPV...