Discuss the pros and cons of the accounting rate of return as an investment criterion.

Q: Explain several ways of defining the concept of rate of return on investment?

A: Return on investment is the tool that can be used to measure the performance of the companies.  The…

Q: Consider the advantages and disadvantages of using the accounting rate of return as an investing…

A: This question explains about  the advantages and disadvantages of using the accounting rate of…

Q: What are the two sources of value in an investment?  Given an example of each.

A: An investment is a process where the investors gives or outlays his or her capital in return of…

Q: What is an investment center manager's advise if the firm intends to adopt the return on investment…

A: This question explains about an investment center manager's advise if the firm intends to adopt the…

Q: what would be the purchasing power of the total return on their investment

A: Purchasing Power: Purchasing power refers to the actual power of buying the goods of services with…

Q: Critically evaluate the importance of the standard deviation factor in comparing investments.

A: Standard deviation helps the investor to measure the volatility of the market. It helps an investor…

Q: What is investment decision making process ? And example

A: An investment decision refers to how a company's finances are to be invested in various assets in…

Q: Describe the Procedures used to determine the rate of return internal to nonsimple investments?

A: Procedure to compute the rate of return internal to non-simple investmentIt is an investment for…

Q: Explain Target Return on Investment?

A: Investments are done to get the return on the same. Generally, investments are done when an…

Q: Calculate the average rate of return on the investment.

A:

Q: Describe the affects of the present value of an investment.

A: Present value of the investment: Present value of the investment is calculated using the cash flows…

Q: Explain Cumulative Investment Return Patterns?

A: Answer: Introduction: Cumulative return is the total amount of money that an individual has…

Q: Which is the most accurate and commonly-used Investment Appraisal Method?

A: The profitability criteria of a project over the other can be considered by doing an analysis, that…

Q: Illustrate the method of investment risk: Investment?

A: Following are the methods of investment risk: Investment: Standard deviation: Standard deviation…

Q: What do you mean by rate of return on the investment?

A: What do you mean by rate of return on the investment?

Q: Which are the several ways of defining the concept of rate of return on investment?

A: Answer: Return on investments is an instrument which can be used to calculate the company’s…

Q: Explain the difference between deterministic and probabilistic financial planning models.

A:

Q: What are the issues that a finance manager considers in taking investment decision?

A: The term investment decision refers to the decisions that are related to how the funds of the…

Q: Explain how differential weight to losses and gains effect investment decisions?

A: Prospect Theory assigns differential weight to losses and gains for making investment decisions.

Q: What is the nominal return associated with an investment in capital, and why?

A: Nominal Return is the amount of money generated by an investment.

Q: “Explain the reasons why the net present value (NPV) method of investment appraisal is likely to be…

A: The Net Present Value (NPV) is a company's financial tool used to estimate the viability of…

Q: How to make capital investment choices based on the internal rate of return (IRR)

A: Capital investment choices based on the internal rate of return (IRR) will be explained:

Q: Which is the single most important criterion for investment decisions?

A: NPV computes the existing value of future benefits by discounting future cash flows with a given…

Q: When comparing the performance of two investment alternatives, which characteristics of investments…

A: For comparison any investment alternative main thing required for Cashflow and certainty of cash and…

Q: financing and investment decisions.

A: Financial decisions are those decisions which are concerned with the financial matters of a…

Q: How do we use the computed figure when evaluating an investment alternative?

A: There are various computations available for evaluation of investment alternatives.  The rate of…

Q: What is meant by an investment project’s internal rate of return? How is the internal rate of return…

A:

Q: What is return on investment?

A: Return on investment  is a financial ratio which is measured as net income divided by the cost of…

Q: Describe some of the investment strategies?

A: Investors always select investment strategies according to their suitability. Investors have…

Q: onsider the following tw

A: A. Standard deviations and coefficient of variation can be computed as follows :

Q: How important is risk to returns and what are the key elements that must be analyzed in this regard…

A: Risk: The Cambridge dictionary gives one of the meanings of the word "risk" as:  "to do something…

Q: Describe the process of the Net-Investment Test?

A: The Net-Investment test is done to figure out if an investment is a 'Pure investment' or a 'Mixed…

Q: Describe the investment analysis?

A: Investment analysis is defined as the process of evaluating an investment for income, risk, and…

Q: Discuss the three components of an investor's required rate of return on an investment

A: The rate which is expected by an investor from its investment over a time period is referred to as…

Q: Describe value, growth and momentum investing. Highlight the differences between them.

A: Value, growth, and momentum investing are the three investment strategies that aim to pave the way…

Q: Define the term, the return on invested capital (RIC)?

A: All investments are made keeping focus on the expected returns that can be generated from it. The…

Q: Explain the term Return on Invested Capital?

A: The formula used to compute return on invested capital:

Q: why do we need to quantify the investment risk and returns?

A: Almost all investments possess certain risks and return.

Q: Discuss and evaluate the use of the payback period as an investment criterion.

A: Payback Period: It refers to the period in which a project or an investment recovers its initial…

Q: Recognize the distinctions among yieldto maturity, currentyield, rate of return,and rate of…

A: Introduction: The terms yield to maturity & current yield are associated with bonds.Bonds are…

Q: Why are statistical approaches and tools important in investment decision-making?

A: This question explains about the statistical approaches and tools that are important in investment…

Q: Discuss two limitations of using the weighted average cost of capital when making investment…

A: The corporation's cost of capital, calculated using both debt and equity, is known as the Weighted…