If we have two capital providers i.e. C1 and C2 agreed on Multi-lateral Mudharabah

Q: Write the two common types of expansion decision problems in investment?

A: The two most common types of expansion decision problems in investment are: 1. Capital budgeting and…

Q: a.    Discuss viability of both projects in today’s global business context and allocate  and…

A: Capital budgeting is a process that uses different methods of evaluating the profitability of…

Q: Describe the process to compare a set of mutually exclusive investments with unequal service lives?

A: Companies always face a dilemma when it takes into consideration various projects that are mutually…

Q: What kind of project is selected while comparing the mutually exclusive revenue projects?

A: Answer: Introduction: Mutual exclusive projects are such projects which will accept only one of the…

Q: Define transfer pricing and elaborate on FOUR (4) of its purposes.  B. In deciding a transfer…

A: There are some transactions that take place within different divisions of an enterprise. Sometimes,…

Q: Describe the process of Evaluating Mutually Exclusive Projects?

A: Mutually exclusive projects are the capital investment proposal where best proposal option is…

Q: Discuss any potential synergistic gain to the acquire and the target entity.

A: Synergistic gains arises due to acquisition and mergers. It can determined by comparing the value of…

Q: NPV and IRR are two DCF methods for analysing a proposed capital investment. Briefly explain how…

A: The characteristics and returns, including the risk of publicly traded investments like stocks,…

Q: Describe the three sufficient conditions required for consistent IRR and NPV rankings for one-time…

A: Introduction The three sufficient conditions required for consistent IRR and NPV rankings of…

Q: Replacement projects are a subcategory of the mutually exclusive projects. True or false?

A: Replacement project:  A replacement project is an undertaking in which the corporation rejects a…

Q: Give examples of the meanings of the following terms: (a) commonsize analysis, (b) vertical…

A: The Answer

Q: Define each of the following terms: e. Excess capacity; lumpy assets; economies of scale

A: If the assets are lumpy and a firm makes a significant buy, the firm will have overabundance…

Q: What is proportionate consolidation? and how will it affect the JV?

A: The proportionate consolidation is the method in which the company reports the assets and…

Q: discuss FASB standard in working capital

A: The Financial Accounting Standards Board (FASB) is a private standard-setting body whose primary…

Q: The overall rate of return needs to be checked for multiple mutually exclusive projects when only…

A: When decision has to be made while comparing one project with other projects and out of which only…

Q: Admission by investment will most probably result to the following, except:   A.Total agreed capital…

A: When the partner is admitted by investment then both total net assets and capital change.

Q: Point out any possible concerns about G & G working capital cycle

A: A follow-up question The problems or concerns which arises from the working capital cycle is the…

Q: How can we observe four important investment characteristics of the project?

A: There are four features of investment: The asset that was bought. The cash flow generated by the…

Q: Explain how to defer gains using the like-kind exchange rules.

A: A like kind exchange is defined as the tax deferred transaction, which used to allow regarding the…

Q: Discuss the term ‘co-payment

A: Co-payment is a very important term in the field of health insurance.

Q: In a table : Explain the difference between independent and mutually exclusive projects?

A: Independent and mutually exclusive projects are the part of Cash flows or cash flow statement.…

Q: What is the difference between VaR as it has been traditionally measured and stressed VaR? Explain…

A: A definition of value at risk is as follows: Value at Risk (VaR) is a metric that estimates the size…

Q: How do the FCFE, corporate FCF valuation, and compressed APV models differ? How are they similar?

A: FCFE stands for free cash flow to equity, FCF indicates free cash flow to the firm and APV refers to…

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: Which of the following is NOT an actor in the microenvironment?   Question 4 options:…

A: The objective of the question is to identify which among the given options is not an actor in the…

Q: Identify and discuss the two components of contributed capital

A: Contributed capital Contributed Capital is the price that the share holders have given to the…

Q: The available capital funds are to be carefully allocated among competing projects by careful…

A: The company should invest the capital funds in such a manner that provides the maximum profit to the…

Q: What assumptions do you need to make in comparing these mutually exclusive revenue projects?

A: Answer: Mutual exclusive projects are such projects which will accept only one of the projects. For…

Q: Distinguish between the following concepts a. Sunk costs and Opportunity Costs

A: Solution:- a)Distinguish between Sunk costs and Opportunity Costs as follows:- Sunk costs:- A sunk…

Q: Please state all criteria that can be used in the economic evaluation of projects. Explain the…

A: Criteria of evaluation of projects: 1 Analysis of cost required for projects. 2 Analysis of benefit…

Q: Define each of the following terms:b. Independent projects; mutually exclusive projects

A: The Project evaluation and selection are one of the key components in Capital Budgetting decisions…

Q: Define divisional cost of capital

A: A firm’s capital structure is the mix of debt and equity. The cost of procuring such debt and equity…

Q: The significance difference between U.S. GAAP and IFRS in regard of development cost that IFRS…

A: The development cost represents the future economic benefit under the IFRS as well as GAAP. Under…

Q: Differentiate between primary and secondary markets.

A: Primary market is a market where shares and securities are created and sold for the first time.…

Q: How can we generalize the decision rule for comparing mutually exclusive projects?

A: A company can only select only one project from various projects because it requires huge capital…

Q: EXPLAIN EASY WAY TO GET A CONSOLIDATED STATEMNET OF FINACIAL POSITION

A: As per IFRS 10 Consolidated Financial Statement are the Financial statement of a group presented as…

Q: Which of the following is an indirect investment? a) Joint venture b) Property loan c) REIT d)…

A: Option C is correct.

Q: Provide and fully explain any 2 reasons why it is particularly difficult to determine the value of…

A: Two Reasons for difficulty in Valuation of IT Company are as follows :-  Reason #1 – Intangible…

Q: Define the term joint product.

A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…

Q: Discuss IFRS standards on working capital

A: Working Capital: Working capital is defined as the difference between an entity's current assets and…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.