Explain how did it get the NPV, the Economic Value Added (EVA), and the Market Value Added (MVA)

Q: What is the Economic Value Added (EVA) method? Provide a definition, state a formula, and define all…

A: Economic Value Added (EVA): EVA also called economic profit is a measure of the financial…

Q: lue (NPV) anc g decisions? Pl

A: Introduction : Net present value  can be understood as the value which depicts the actual worth…

Q: Define total net present value (TNPV)

A: Total net present value of an investment is the present value of the future cash inflows due to a…

Q: Explain the term economic order quantity.

A:

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

Q: What formula do you use to calculate ROI?

A:

Q: Initial investmen Discount rate Net Profit 30,000,000 10% 12,937,000

A: Net Present Value (NPV) is a financial metric that measures the difference between the present value…

Q: If a company were filing a claim for compensation with an insurance company for manufacturi…

A: Replacement cost: Replacement cost means the cost which the firm would have to incur to replace or…

Q: What are some possible financial decisions in which using the Present Value (PV) formula might be…

A: The present value (PV) is the current value provided a defined rate of return of a future amount of…

Q: How do you calculate enterprise value?

A: Enterprise value is the measure of the total value of the company. It gives aggregate value of the…

Q: Explain how useful the price mechanism is in tackling the basic economic problem?

A: the main role of price mechanism in basic economic problem is allocate scare resources in market…

Q: With the given information, find the Net Present Value (NPV).

A: The net worth of the project after the deduction of the current worth of the cash outflows from the…

Q: Comparison of NPV, IRR or Payback period

A: The net present value (NPV) is the difference between the present value of cash inflows and…

Q: find The internal rate of return (IRR) for this case in exceland equation.

A: Internal rate of return(IRR) is the rate at which the the initial cost of project is equal to…

Q: What ratio, profit, target, or margin is the most important?

A: Accounting Accounting refers to the keeping of a systematic record of business transactions…

Q: What is multistage valuation model?

A: The multi-stage dividend discount model is an equity valuation model that expands on the Gordon…

Q: b) Suppose you want to buy a custom-made program to manage your IS project from Supertuna co., and…

A: Present value technique is the method wherein we discount the future cashflows with the applicable…

Q: what is meant by the required rate of return

A: The return which is expected to be earned by investing in a security is known as Required Rate of…

Q: market performance (d)

A: The market performance can be analyzed from trend in dividend yield, dividend payout ratio and…

Q: Assume benefit is unchanged, how to manipulate  the cost to have positive NPV (net present value)

A: Net Present Value is the difference between PV of all cash inflows (benefits) and PV of all cash…

Q: Q1 A company is evaluating three possible investments. Each uses the straight-line method of…

A: Computation of Average Investment is as follows: Average investment =Initial value+Salvage…

Q: What is limitation of Payback period, Net Present Value (NPV) and Internal rate of return (IRR).…

A: i) Payback period: Payback period is the expected time period which is required to recover the cost…

Q: Which different terms are used to refer to rate of return?

A: Rate of return is the return that is expected by the investors from the investment made. It is…

Q: PROVIDE - PRESENT VALUE, FUTURE VALUE, AND internal rate of return (IRR)

A: Present and Future Value: The current value of a cash flow that is expected to occur at some time in…

Q: vestments. The purchase-order lead time is 2.5 weeks. Snacku ompany sells 125 lens per week. The…

A: Economic Order Quantity is the quantity that minimizes the holding cost and ordering cost. It is the…

Q: McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $815 per set and…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end extra $6,000 at…

A: calculation of net present value are as follows

Q: What does the intrinsic value formula look like? Please explain the components of the formula.

A: Intrinsic value or the real value is the calculated value or anticipated value of a company’s stock…

Q: What is the difference between YTD and YoY return? Provide an example

A: In the question they have asked regarding YTD and YOY differences between them so they will be…

Q: What formula to use to find Payback Period and NPV? (in Excel)

A: NPV or Net Present Value is the present value of all net cash cashflow on a provided discount rate.…

Q: If we define the NPV index as the ratio of NPV to cost, what is the relationship between this index…

A: In this question, we are required to determine the relationship between NPV Index and Profitability…

Q: or working for NPV and EAA calculation?

A: EAA is calculated as shown below. EAA=NPV×r1-11+rnHere,Cost of capital/ WACC=rLife of project=n

Q: In economics the circular flow model illisytates what

A: The circular flow model in economics is a simplified representation of how the economy functions. It…

Q: How is the term ‘net realizable value’ defined as used in the acronym LCNRV?

A: Inventory: It implies the current asset that is presented on the balance sheet of the company and…

Q: Can you do the Net present value for Machine B

A: NPV can be found as the difference between present value of cash flow and initial investment of…