Interested to Buy Any Domain ? << Click Here >> for more details...
nav , npv
- 2 Answers
- 15217 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 |
please give the sbi bank clerk exam paper model in last five years?
I have an S Corporation called Trend Foods Inc. I would like to make a division of that company that services computers and call that Trend Computer Service. I do not want to set up another Corporation for Trend Computer Service. Can I just make a division of Trend Foods and what paperwork do I need to fill out to make that happen? Thanks for the help, Jim
WHAT IS DIFFERENCE BETWEEN TDS AND TCS?
what is difference between income accrued and income receivable?
EXPAND_________VT
What is RTGS
How do we treat grants that are received in advance of the period when they are to be spent?
What is Ledger
what is depreciation?
what difference b/w commerce and accounting?
What is meant by advance ruling? What is the scheme of advance rulings?
What is petty cash and main cash book? Diff b/w them
Audit 
