The IRR is aninvestment analysistechnique used by companies to determine the return they can expect comprehensively from future cash flows of a project or combination of projects. Overall, IRR gives an evaluator the return they are earning or expect to earn on the projects they ...
What is the difference between book value and market value of an investment? Why do we have two measures for the same thing? Value An essential trait of human civilization is the attachment of value. It pertains to the labeling of worth t...
In the context of capital budgeting, what is an opportunity cost? How do tax considerations affect the cost of debt and the cost of equity? Explain. Explain the difference between relevant costs, irrelevant costs, and sunk costs.Explore our homework questions an...
A favorable decision on a project can be expected only if the internal rate of return is equal to or above the hurdle rate.Generally, the hurdle rate is equal to the company's costs of capital, which is a combination of the cost of equity and the cost of debt. Man...
Although there is a difference between ROA and ROI, both are two key ratios that can be used to measure returns generated proportionate to assets and investments respectively. To better understand their usefulness they should be compared against ratios of past years and other companies in the same...
2. What is the main difference between the depiction of a project in accounting (net income) and in finance Explain why equity in income of investees appears as a subtraction when net income is converted to cash flow from operations? How does each eleme...