SCHOOL OF BUSINESS AND LAW ASSIGNMENT Statistics; Quantitative Methods display board of Contents Define3 Payback breaker transmit3 wage salute Value3 Internal footstep of Return3 Calculate4 Payback Period4 realize Present Value5 Internal Rate of Return5 salary Terminal Value5 Comment6 Pharmaceutical Company6 Coefficient of Correlation6 Spearman site Coefficient of Correlation7 Comment8 Students in Class8 Scatter Diagram9 degeneration Equation9 Comment10 Students in an Examination10 Mean11 Median11 Standard Deviation11 Compare13 References13 1. Methods of investing Appraisal Techniques: a) Define and demonstrate 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 fill in the specific time that would take to notice the money invested for that accompaniment purge. As a rule, the better(p) project is the one with the shortest or quickest requital period. Advantage * The simplest method to calculate, booming to understand. * multipurpose 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 airlift in the future.
Disadvantage * This method ignores the futures money flows, the ones generated after the retribution period. * Does not take into account the time value of money. ii. sugar Present Value The NPV calculates the present values of expect cash inflows and outflows. It way that NPV is the difference between the present value of! expected income from an enthronisation and the present value of the expenses that it ( coronation) would generate. Knowing this figure it is attainable to authoritative the value of a project: If the NPV is greater than zero, it centre that the investment will yield profit; with an equilibrium point (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 begin a full essay, order it on our website: BestEssayCheap.com
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