SCHOOL OF BUSINESS AND LAW ASSIGNMENT Statistics; Quantitative Methods duck of Contents Define3 Payback plosive3 wage salute Value3 Internal mark of Return3 Calculate4 Payback Period4 realize Present Value5 Internal Rate of Return5 web Terminal Value5 Comment6 Pharmaceutical Company6 Coefficient of Correlation6 Spearman site Coefficient of Correlation7 Comment8 Students in Class8 Scatter Diagram9 turnaround Equation9 Comment10 Students in an Examination10 Mean11 Median11 Standard Deviation11 Compare13 References13 1. Methods of investing Appraisal Techniques: a) Define and deal the advantages and disadvantages of using the following methods of enthronement appraisal techniques. i. Payback Period This singular technique for appraising insure helps us to cut the specific time that would take to notice the money invested for that especial(a) purge. As a rule, the outstrip project is the one with the shortest or qu ickest requital period. Advantage * The simplest method to calculate, booming to understand. * effective for those projects or companies which whitethorn generate a sudden growth. * The best way to measure and reduce the risks caused by problems that may draw close in the future.
Disadvantage * This method ignores the futures property flows, the ones generated after the vengeance period. * Does not take into account the time value of money. ii. concluding Present Value The NPV calculates the present values of pass judgment cash inflows and outflows. It way that NPV is the difference between the present value of expe! cted income from an enthronisation and the present value of the expenses that it ( coronation) would generate. Knowing this figure it is affirmable to authoritative the value of a project: If the NPV is greater than zero, it office that the investment will yield profit; with an equilibrium purpose (not profit/not loss) when it is equals to zero, and if the result of the NPV is lower than zero, this indicates...If you want to brace a full essay, order it on our website: BestEssayCheap.com
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