nav , npv
- 2 Answers
- 14127 Views
- RRDonnelley, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / karthik k
NAV stands for Net Asset Value which indicates the unit
price of a stock or fund.
NAV of a fund = (asset + income - liabilites - expenses)/
(no of units outstanding)
Asset = Market value of investments+receivables + Accrued
income + other asset(i.e. income due but not received)
Liabilites=accrued expenses + payables + other liabilites.
------------------------------------------------------------
NPV stands for Net Present Value. which is defined as the
total present value (PV) of a time series of cash flows. It
is a standard method for using the time value of money to
appraise long-term projects. Used for capital budgeting,
and widely throughout economics, it measures the excess or
shortfall of cash flows, in present value terms, once
financing charges are met.
Therefore NPV is the sum of all terms , the formula is,
R suffix t divided by (1+i)power t
where
t - the time of the cash flow
i - the discount rate (the rate of return that could be
earned on an investment in the financial markets with
similar risk.)
Rt - the net cash flow (the amount of cash, inflow minus
outflow) at time t (for educational purposes, C0 is
commonly placed to the left of the sum to emphasize its
role as investment).
if NPV > 0 the investment would add value to the firm.
the project may be accepted.
if NPV < 0 the investment would subtract value from the
firm.
the project should be rejected.
if NPV = 0 the investment would neither gain nor lose value
for the firm.
We should be indifferent in the decision whether to accept
or reject the project. This project adds no monetary value.
Decision should be based on other criteria, e.g. strategic
positioning or other factors not explicitly included in the
calculation.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / ben c
Slight correction on Karthik K:
t - the time of the cash flow, whereas t(now) = 0
...
If NPV > 1 the investment would add value to the firm.
the project may be accepted.
If NPV < 1 the investment would subtract value from the
firm.
If NPV = 1 the investment would neither gain nor lose value
for the firm
| Is This Answer Correct ? | 4 Yes | 1 No |
i m purchasing some material from one company with tax invoice & i m also doing work with them on commission basic.Now what should i raised them? credit note or debit note? Is there any format for that?
how u can control stock movments....like issuing raw materials receiving...in practical way..basically in ,y org we r using bin cards,barcodes etc but somehow need more concentration... help me frds..
Expand DDO?
what is waybill key number & how can it be issue?
what is journal entry to make- provision for liablities and provision for assets
Rent Paid Rs.12000/- (which is included for the whole year i.e Jan to Dec) and they have asked me to give Journal Entry for the Entry for the Month of Jan, Feb and March
34 Answers Accenture, Genpact, Mercer,
What is MIS reports. How can we make it and what is process to make it and what is the advantage of it in business world
I NEED RS.100 CHANGE BUT I DON,T WANT RS.10 AND I WANT ONLY 6 NOTES.
EXPAND___________LOA
BY WHOME THE BANK RECONSILIATION STATEMENT IS PREPARED
44 Answers Capital IQ, CPT, ICICI,
I need canara bank exmam model question papers. please send to this email id iyyam_vj@yahoo.com
Expand CTD
Audit 
