Describe in words how an NPV profile is constructed. How are the intercepts of theX- and Y-axes determined?

Q: Discuss the sensitivity of the model to changes in the value of the input variables

A: It is a technique that is used to get the estimates of independent variables by changing the…

Q: Define the following terms, using graphs or equations to illustrate youranswers wherever feasible:…

A: Characteristic lineIt a line that is helpful in summarizing specific security that helps in…

Q: How is Parallel Simulation utilized during an audit?

A: Auditing:   It is the systematic verification of the books of accounts of an organisation by an…

Q: Define geometric-gradient-series?

A: When there is a change in the cash flows series whether it is positive or negative then the series…

Q: Explain constant prepayment assumptions?

A: Prepayment refers to the settlement of debt before its actual due date. The model which determines…

Q: Compare IRR with MIRR method

A: Internal Rate of Return (IRR) is the rate at which the present value of expected cash inflows is…

Q: Describe in words how an NPV profile is constructed. How do you determine the intercepts for the x…

A: NPV profile means the graph which depicts the Net present value of the project at various discount…

Q: Define sensitivity analysis

A: The process to evaluate the effect of change in one variable on the end result of a project is…

Q: What are POS Systems? Enumerate their advantages versus manual data collection systems.

A: Introduction: A point of sale (POS) system is used to monitor sales and receive consumer payments.…

Q: Briefly explain the usefulness of a sensitivity graph

A: A sensitivity graph depicts all the assumption results on the final outcome in the exercise of…

Q: What is system decomposition and subsystem interdependency? How are they related?

A: Decomposition in computer terminology refers to factoring which is the breaking down of a complex…

Q: What is Monte Carlo simulation analysis?

A: Answer: Monte Carlo simulation is the methodology used to consider the financial, cost, and project…

Q: Under what conditions will the weighted average and FIFO methods give essentially the same results?

A: Under the FIFO (First in first out) method of inventory valuation, goods which are purchased first…

Q: Test data, an integrated test facility, and parallel simulation are compared and contrasted.…

A: Introduction: Test data is data used solely for testing within computer programs, and it is…

Q: what is an example of data flow diagram, fixed asses system?

A: A data flow diagram (DFD) refers to a graphical representation of a flow of any information or…

Q: What is the Geometric-Gradient Series?

A: Geometric Gradient series is a series of funds that occur at every interval at decreasing or…

Q: Parallel

A: ISTISNA AND PARALLEL ISTINA :

Q: xplain the shape of the Markowitz (that is, mean-variance) efficient frontier, specifically what…

A: Markowitz (that is, mean-variance) efficient frontier-It is also known as mean - variance model and…

Q: What are the different techniques of computing interest?

A: The different techniques of computing interest of explanation:

Q: a.Determine two-sigma control limits using the above data. (F

A: A c-chart helps to monitor the defects that occurred in the process. It helps companies to determine…

Q: What are the advantages of real-time data collection?

A:

Q: What is multiple IRRs?

A: Multiple IRRs IRR is a discounting rate at which an amount of investment equals PV of the future CF.…

Q: Describe the relationship between Simulation analysis, Scenario analysis and Sensitivity analysis –…

A: Sensitivity Analysis refers to an assessment of the impact of the changes in one variable on the NPV…

Q: IRR analysis is based on the

A: IRR (internal rate of return) is one of the capital budgeting techniques that is used in order to…

Q: nformation technology has ha

A: IT is the development and management of an organization's processes, strategies, and functions based…

Q: Who were Modigliani and Miller (MM), and whatassumptions are embedded in the MM and Millermodels?

A: Introduction: Capital structure relates to financing of the overall activities and development of a…

Q: Why are denormalized tables used in data ware-houses?

A: Data Warehouse:   Data warehouse is also termed as enterprise data warehouse. It can be defined as…

Q: Define characteristic line

A: Characteristic line is a graphical representation of alpha (α) where alpha is the difference between…

Q: Explain briefly how a sensitivity analysis is done and what the analysis is designedto show.

A: The question is based on the concept of a sensitivity analysis, which is a very common analysis used…

Q: What is the objective of output controls? List and briefly describe different output controls.

A: Output control guaranteed that the program's result was precise and complete. Output control focuses…

Q: Describe the process of calculating NPV.

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

Q: If you wanted to evaluate a firm’s DSO, with what could you compare it?

A: DSO is the number of days that firms take to convert their account receivables into cash.

Q: Answer the following questions : A. Which alternative is the best? B. Calculate the point of…

A: A firm finances its business operations through different sources of capital such as ordinary…

Q: What are the advantages of real-time data processing?

A:

Q: Make an Internal Rate of Return sample problem with a diagram and solution.

A: The IRR can be called the discount rate, it is applicable to the cash flows of the project and…

Q: Describe straight-line method with example.

A: Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of…

Q: What is sensitivity analysis and its functions?

A: The answer for the theory question on sensitivity analysis and its functions is discussed hereunder…

Q: What is the NAV?

A: NAV full form is net asset value The detailed explanation is explained in step 2

Q: How the MIRR is calculated

A:

Q: e NPV profile intersects the horizontal axi

A: Net present value refers to the difference between the present value of cash inflow and cash…

Q: Which type of chart would be best for representing the correlation between two ilems!

A: Answer

Q: Explain how you find the portion of the mean-variance-frontier that is the efficient frontier and…

A: There are two parts of portfolio one is return and another is risk.

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.