Provide and fully explain any 2 reasons why it is particularly difficult to determine the value of an IT investment?

Q: What are the implications of the weak‐form, semi-strong-form, and strong-form of the EMH for…

A: The Efficient Market Hypothesis (EMH) describes a stock market that is both operationally and…

Q: Create a classification of investment chart to distinguish between simple and nonsimple investment?

A:

Q: How can we determine which projects are pure investments?

A: A pure investment project refers to an investment wherein the firm borrows money from the project…

Q: How can we use the internal rate of return to evaluate whether we should pursue a specific project?…

A: It is important for the investors to evaluate the project in all aspects before making any…

Q: How can we Evaluate a Single Project: For a simple investment?

A: Following are the ways in which a single project can be evaluated: Present worth: Present worth is…

Q: Are there sources of value in an investment? what they are? and give an example for both?

A: Yes, there are various sources of value in an investment. An investment is a stock or a bond. People…

Q: Is this statement true or false? And why? The investment in a subsidiary (SME) can be justified…

A: Corporate Social Responsibility: The notion of "Corporate Social Responsibility" (CSR) in management…

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: Describe the technology that is commonly practiced in financial investment?

A: The question is based on the concept of FinTech methods used in taking investment decisions in the…

Q: d. Explain why NPV is considered technically superior to Payback and Accounting Rate of Return (ARR)…

A: There are various capital budgeting methods that can be used to assess or evaluate various…

Q: Discuss the difficulties in using Net Present Value [NPV] as an investment appraisal method.

A: The net present value method is used by the company for the evaluation of the profitability of…

Q: Which one of the following is an example of conventional form of investment?

A: Conventional investment categories includes trading investment options.

Q: why is a need for investor to evaluate the investment ?

A: All investments will have a certain percentage of risk. To control the future risks in the…

Q: ccording to Miller and Modigliani, it is at really determines a firm's value.

A: According to M&M, value of firm is the sum of present value of all future cash flows.

Q: While comparing investment returns is an important starting point in evaluating investment…

A: Following are the steps involved in the performance analysis of investments:Identification of the…

Q: Investment projects fall within two types. What are they?

A: An investment project is a series of cash inflows and outpourings, normally beginning with a money…

Q: Does the IRR measure ignore the scale of investment?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: What information is considered a necessary evil in constructing an investment policy statement?

A: Provide appropriate guidance on portfolio construction and management Maintain focus on the…

Q: Give an example of an asset that would have the most significant investment?

A: Every business organization wants to invest its idle funds into some productive assets. Investment…

Q: Explain the investment pool?

A: Investment Pool: Investment Pool is the joint funds that is planned financial arrangements for a…

Q: An NPV analysis is one part of a complete captial investment analysis. What is the second part that…

A: Introduction: An analysis of capital investment is the mechanism by which management prepares,…

Q: Illustrate the method of investment risk: Investment?

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

Q: Why is the net-investment test the only way to accurately predict projectborrowing? Explain with an…

A: Definition: Net- investment measures the company's assets and investment like property, software,…

Q: Describe the Investment-Pool Concept?

A: Investment pools are institutional elements that are pooled speculation structures, with the…

Q: In pursuing one’s investment objective, which is specified in terms of return requirement and risk…

A: Investment is an activity that is engaged in by people who have savings. It can be in two forms such…

Q: Explain the parameters or situations used to determine if the operating and financial leverages are…

A: Operating leverage is based on the cost structure of the company. It is the extent of fixed and…

Q: Please explain if the below-mentioned statement is true or false and why, in as much detail as…

A:

Q: In order to determine whether an investment is visible, what factors should be considered?

A: For the evaluation of a task, no fixed steps that have to be taken. Numerous things should be…

Q: Why investors will rely on nonfinancial statement forms of information to facilitate the efficient…

A: Unlike financial information, non-financial information can not be represented in monetary values.…

Q: Explain why risk and uncertainty should be considered in the investment appraisal process.

A: Investment appraisal process has to be a thorough and a comprehensive process in order to enable…

Q: Considering the unequal investments, which of the following techniques would be most approprlate for…

A: Payback Period: It is the period in which the project recovers the cash outflow.   Net Present…

Q: What is the main determinant of the level of investment?

A: An investment is simply a financial instrument formed with the goal of allowing money to grow. One,…

Q: The benefits of CSR investments? a.must be evaluated qualitatively for the projects that cannot be…

A: Corporate social responsibility: It is a self-regulatory model that helps the company to be socially…

Q: Now add the risk-free asset. What impact doesthis have on the efficient frontier?

A: An efficient portfolio is a portfolio that ensures maximum return for a given amount of risk and…

Q: What is the biggest advantage of using RI to evaluate investment centers?

A: The evaluation of investment centers based on whether the minimum rate of return of the company is…

Q: Distinguish between simple and nonsimple investment with examples?

A: A simple investmentUnder it, there is negative initial cash flow and in the series of net cash flow,…

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: Describe some of the investment strategies?

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

Q: How important are assumptions in preparing a business project feasibility? Justify your answer. What…

A: A development plan, sometimes referred as a feasible analysis or sustainability report, is a method…

Q: Our range of investment choices-and their relative risk factors-may be classified into three types…

A: While choosing to make an investment decision, the main area of focus is their risk-return…

Q: What is e Direct Investment?

A: Direct Investment is an important concept in the world of finance. Direct investment is also…

Q: How do you overcome the challenges posed by unequal lives of the projects being comparedand when…

A: Capital Budgeting is the evaluating techniques which evaluates the profitability of the long term…