(This post explains what are NPV, IRR, DCF, Time value of money, Hurdle rate or opportunity cost of capital, accounting rate of return, pay- back period etc.) The price of groceries or any other items purchased by you today will not be same next year. The purchasing ability of a Rupee today is different (normally…
Benefit to cost ratio is used to calculate the NPV in a proportion or ratio format. Here, the present value of future cash flows is calculated on proportion method, though, the method of calculation is similar to NPV method. Benefit to cost= Present value of investment/ present value (PV) of future inflows. If the ratio…
The Financae Minister Mr.Arun Jaitley, said that Cabinet approves 2.11 lakh crore recapitalization package to public sector banks. Of 2.11 crore, Rs 1.35 lakh crore will come from recap bonds, while the rest will come from the market and budgetary support.Finance minister informed that the entire Rs 2.11 lakh crore of capitalisation will be spread…