This document discusses various financial techniques used for project appraisal, including net present value (NPV), internal rate of return (IRR), average rate of return (ARR), payback period, discounted payback period, and profitability index. It provides formulas for calculating each technique and discusses their advantages and disadvantages for assessing the viability and profitability of potential projects.
A brief introduction of Project Time Management, covering the main concepts like Activities, Project Schedule, Activity dependencies, Critical Path, Lead and Lags etc.
A brief introduction of Project Time Management, covering the main concepts like Activities, Project Schedule, Activity dependencies, Critical Path, Lead and Lags etc.
PPT with overall coverage of the project evaluation and all the topic of project evaluation and post project evaluation are covered in this ppt.It includes all the topic of project evaluation:-
=>which of the project should be evaluated?
=>cost&timing
=>social analysis
=>environmental analysis
=>progress report
=>final report
and many more topics are covered in this ppt for the brief description of project evaluation and some left out topics are numerical of project evaluation.
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. It may be positive, zero or negative.
NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.
Also known as sophisticated technique for capital budgeting exercise.
It accounts for time value of money by using discounted cash flows in the calculation.
PPT with overall coverage of the project evaluation and all the topic of project evaluation and post project evaluation are covered in this ppt.It includes all the topic of project evaluation:-
=>which of the project should be evaluated?
=>cost&timing
=>social analysis
=>environmental analysis
=>progress report
=>final report
and many more topics are covered in this ppt for the brief description of project evaluation and some left out topics are numerical of project evaluation.
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. It may be positive, zero or negative.
NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.
Also known as sophisticated technique for capital budgeting exercise.
It accounts for time value of money by using discounted cash flows in the calculation.
Investment Decision — Capital Budgeting Techniques — Pay Back Method — Accounting Rate Of Return — NPV — IRR — Discounted Pay Back Method — Capital Rationing — Risk Adjusted Techniques Of Capital Budgeting. — Capital Budgeting Practices.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
2. Project appraisal
Project appraisal is a generic term
that refers to the process of
assessing, in a structured way, the
case for proceeding with a project or
proposal. In short, project appraisal is
the effort of calculating a project's
viability. It often involves comparing
various options, using economic
appraisal or some other decision
analysis technique.
3. PROCESS OF PROJECT APPRAISAL
Initial Assessment
Define problem and long-list
Consult and short-list
Develop options
Compare and select Project appraisal
4. Financial techniques for project
appraisal
Net present value (NPV)
Internal rate of return (IRR)
Average rate of return (ARR)
Pay back period
Discounted payback period
Profitability index
5. Net Present Value
(NPV)
The difference between the present value of cash inflows and the
present value of cash outflows. NPV is used in capital budgeting to
analyze the profitability of a project.
The following is the formula for calculating NPV:
where:
Ct = net cash inflow during the period
Co= initial investment
r = discount rate, and
t = number of time periods
6. Advantages Of NPV
1. NPV gives important to the time
value of money.
2. In the calculation of NPV, both after
cash flow and before cash flow over
the life span of the project are
considered.
3. Profitability and risk of the projects
are given high priority.
4. NPV helps in maximizing the firm's
value.
7. Disadvantages Of NPV
1. NPV is difficult to use.
2. NPV can not give accurate decision if the
amount of investment of mutually exclusive
projects are not equal.
3. It is difficult to calculate the appropriate
discount rate.
4. NPV may not give correct decision when
the projects are of unequal life.
8. Internal Rate of Return
The discount rate often used in capital budgeting
that makes the net present value of all cash flows
from a particular project equal to zero. Generally
speaking, the higher a project's internal rate of
return, the more desirable it is to undertake the
project. The formula for IRR is:
0 = P0 + P1/(1+IRR) + P2/(1+IRR)2 + P3/(1+IRR)3
+ . . . +Pn/(1+IRR)n
where,
P0, P1, . . . Pn equals the cash flows in periods 1,
2, . . . n, respectively; and
IRR equals the project's internal rate of return.
9. Advantages Of IRR
1. IRR method considers the time value
of money.
2. IRR method discloses the maximum
rate of return the project can give.
3. IRR method considers and analysis
all cash flows of entire project.
4. IRR method ascertains the exact
rate of return the project earns.
10. Disadvantages Of IRR
1. IRR method is difficult to understand,
complications due to trial and error
method.
2. The important drawback of IRR is that it
recognizes the cash inflows generated
by project is reinvested to internal rate of
project, but NPV recognizes such cash
inflows are reinvested to cost of capital
of the organization.
3. Single discount rate ignores the varying
future interpret rate.
11. Average Rate Of Return (ARR)
Average rate of return (ARR) is also known as
accounting rate of return. ARR is based upon
accounting information rather than on cash flow. In
other words, Accounting rate of return (ARR) refers to
the rate of earning or rate of net profit after tax on
investment.
ARR consider profitability rather than liquidity. Under
ARR technique, the average annual expected book
income is divided by the average book investment in
the project.
ARR = (Average net income/Average investment) x 100
Where,
Average net income= Total net income/No. of years
Average investment= Net investment/2
12. Illustration for ARR
The initial investment of the project is Rs.30,000. The net profit after
tax is as follows:
Year Net profit after tax($)
1 25000
2 30000
3 20000
4 25000
5 40000
Solution
Calculation of ARR:
ARR = (Average net income/Average investment) x 100
= (28000/15000) x 100 = 18.67%.
Where,
Average net income = Total net income/No, of years
= 25000+30000+20000+25000+40000/5 = 28000
Average Investment = Net investment/2 = 30000/2 = 15000
13. Advantages Of ARR
1. ARR is based on accounting
information, therefore, other special
reports are not required for
determining ARR.
2. ARR method is easy to calculate and
simple to understand.
3. ARR method is based on accounting
profit hence measures the
profitability of investment.
14. Disadvantages Of ARR
1. ARR ignores the time value of
money.
2. ARR method ignores the cash flow
from investment
3. ARR method does not consider
terminal value of the project.
15. Payback period Method
A company chooses the expected
number of years required to recover
an original investment. Projects will
only be selected if initial outlay can be
recovered within a predetermined
period. This method is relatively easy
since the cash flow doesn't need to be
discounted. Its major weakness is that
it ignores the cash inflows after the
payback period, and does not
consider the timing of cash flows.
16. Advantages Of Pay Back
Period
1. Pay back period is simple and easy to
understand and compute.
2. Pay back period is universally used and
easy to understand.
3. Pay back period gives more importance on
liquidity for making decision about the
investment proposals.
4. Pay back period deals with risk. The project
with a shortest PBP has less risk than with
the project with longest PBP.
17. Disadvantages Of
Pay Back Period
1. In the calculation of pay back period,
time value of money is not recognized.
2. Pay back period gives high emphasis
on liquidity and ignores profitability.
3. Only cash flow before the pay back
period is considered. Cash flow
occurred after the PBP is not
considered.
18. Discounted payback
period
The discounted payback period is the
amount of time that it takes to cover
the cost of a project, by adding the net
positive discounted cashflows arising
from the project. It should never be the
sole appraisal method used to assess
a project but is a useful performance
indicator to contextualise the project’s
anticipated performance.
19. Advantages of Discounted
Payback Period
owners and managers like regular
payback period to know how long it will
take them to recover their initial
investment. Using discounted payback
period simply gives them a more finely
tuned estimate of that.
discounted payback period has an
advantage over regular payback period
for that very reason - cash flows are
discounted and calculation gives a better
estimate of payback period.
20. Disadvantages of Discounted
Payback Period
Time value of money is not considered when you
calculate payback period. In other words, no
matter in what year you receive a cash flow, it is
given the same weight as the first year. This flaw
will cause managers to overstate the time to
recovery for the initial investment.
A second flaw is the lack of consideration of cash
flows beyond the payback period. If the capital
project lasts longer than the payback period, then
cash flows the project generates after the initial
investment is recovered are not considered at all
in the payback period calculation.
21. Profitability Index
This is the ratio of the present value of
project cash inflow to the present
value of initial cost. Projects with a
Profitability Index of greater than 1.0
are acceptable. The major
disadvantage in this method is that it
requires cost of capital to calculate
and it cannot be used when there are
unequal cash flows. The advantage of
this method is that it considers all cash
flows of the project.
22. Advantages Of Profitability
Index
1.Profitability index considers the time
value of money.
2. Profitability index considers analysis
all cash flows of entire life.
3. Profitability index makes the right in
the case of different amount of cash
outlay of different project.
4. Profitability index ascertains the
exact rate of return of the project.
23. Disadvantages Of Profitability
Index
1. It is difficult to understand interest
rate or discount rate.
2. It is difficult to calculate profitability
index if two projects having different
useful life.