How to choose a Benchmark?

Q: What are the reasons for preparing horizontal and vertical analysis ?

A: Vertical and horizontal analysis of financial statements is part of financial statement analysis.…

Q: Which Variable Is most critical in Sensitivity Analysis?

A: Sensitivity analysis helps to analyze the project by considering different variables. It helps…

Q: What does the term “attainable set” mean?

A: The art of deciding the investment mix and policy, making the investments equivalent to its…

Q: What is the purpose of carrying out an incremental analysis?

A: Incremental analysis is also known as Relevant cost approach Differential analysis Marginal…

Q: Explain the term sensitivity analysis

A: Sensitivity Analysis is a tool used in financial modeling to study how independent variable values…

Q: Define the Base Case and the Proposed Alternatives?

A: The base case is the output expected from the basic assumption made by the project team. The basic…

Q: What are risk assessments?

A: Risk assessment means identification of risk faced by a business organization that hampers it from…

Q: The components of the conceptual framework ?

A:

Q: How does the decision-maker use the scenario analysis?

A: Scenario analysis helps investors and analysts in making better decisions.

Q: What are the steps to figure this out?

A: Journal: Recording of a business transactions in a chronological order.

Q: Critically examine

A: (i) Identify the income tax expense (income) shown in the income statement. On what basis this…

Q: What is preliminary prospectus?

A: Preliminary prospectus is the first document submitted by a company which plans for initial public…

Q: How should one establish performance measurements? And how can they be aggregated?

A: Business Sustainability: Business sustainability is increasing the business worth for a long term,…

Q: What are the different variables in sensitivity analysis?

A: Answer: Under a given set of expectations, a sensitivity analysis describes the way different values…

Q: What is the current approach embraced by standard setters in measurement and write its advantages…

A: Measurement is the manner of determining the quantitative values at which items of financial…

Q: What is a scenario analysis? What is it designed to show, and how does it differ froma sensitivity…

A: Scenario analysis is the technique of analyzing the portfolio to find out the expected value of…

Q: Describe the benefits of benchmarking.

A: Benchmarking is a way to measure something in corporate environment, it is also used to promote…

Q: Which alternative should be selected? Choose the correct answer below.

A: Net Present Worth: It is the present worth of the annual cash inflows and annual cash outflows…

Q: What are Required Assumptions and Decision Frameworks for replacement analysis?

A: Replacement analysis:   It is an analysis tool in capital budgeting decisions. An asset life tends…

Q: Define the term PW criterion?

A: Present worth is a systematic identicalness technique where cash flows of a task are limited at…

Q: What is the project’s MIRR?

A: Rate of return is the expected result of any investment or project. It can be negative or positive.…

Q: Illustrate the Guidelines for Selecting a MARR?

A: It places a base gainfulness prerequisite on the discount rate, or MARR, which a venture or…

Q: artnership

A: Correct answer :- D 15000

Q: How is benchmarking beneficial?

A: Benchmarking is a measure which determines a company's competitive position through comparing its…

Q: what formula did you use to calculate PVIFA?

A: The acronym PVIFA stands for the present value interest factor. The present value interest factor is…

Q: Define Covariance?

A: Portfolio management is a dynamic decision making process about investment. It is a continuous…

Q: What is a sensitivity analysis, and how does it work? Can you provide an illustration of this?

A: Here is the Answer

Q: how to learn CAPM model?

A: In order to increase the return and reduce the risk, investors generally adding some securities to…

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: sensitivity analysis

A: The sensitivity analysis represents the more reliable source of prediction. It helps the managers to…

Q: What are some strengths and weaknesses of sensitivity analysis and scenario analysis?

A: Sensitivity Analysis determines how the dependent variable changes when the independent variable…

Q: What are the two stages in risk assessment?

A: Risk assessment is the process which involves analysis & identification of events that can have…

Q: What steps would be involved?

A: Arbitrage is the strategy applied by the investor to take the benefit of mispricing, at various…

Q: What is the decision rule for ARR?

A: Accounting rate of return refers to rate of profit earned on an investment. The ARR is computed by…

Q: In your opinion what are the three most important areas to use when benchmarking?

A: Benchmarking is the technique to compare the business's product, practices, and services of the…

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: Highlight the effectiveness of FIFO or FEFO?

A: Inventory management techniques are used by the management for the proper recording and valuation of…

Q: What are the types of fundamental analysis?

A: Fundamental analysis basics is the analyzing method used to evaluate the intrinsic value of stocks…

Q: What does ROE measure?

A: Profitability ratio is referred as the financial metrics which is used by analysts as well as…

Q: research methodology?

A: Research methodology is a technique which is used to identify, select, analyze the information.…

Q: What is a sensitivity analysis?

A: Sensitivity analysis:Sensitivity analysis ascertains the manner in which the different values of an…