Explain the drawbacks of IRR over MIRR with example?

Q: Explain the potential advantages  and disadvantages of using CAATs

A: ADVANTAGES OF USING USING CAATs (COMPUTER ASSISTED AUDIT TECHNIQUES) 1. CAATs HELPS THE AUDITOR TO…

Q: The NPV of the replacement is $        ?

A: Net present value is the difference of discounted cash inflows and outflows.

Q: Explain breakeven analysis.

A:

Q: Briefly explain two measures that can be used in narrowing down the expectation gap

A: Ans. The audit expectation gap is defined as the difference between what the public expects from an…

Q: Explain the call-put parity relation and how it is justified?

A: call-put parity relation 1. It shows the prices of calls and puts , consistency of underlying…

Q: What are the advantages and disadvantages of  FIFO?

A: First-in-First-Out:  In First-in-First-Out method, the costs of the initially purchased items are…

Q: What are the differences between MIRR method and IRR method?

A: The question is related to MIRR and IRR.

Q: Explain why NPV is the best criterion and how it overcomes problems inherent in the other methods.

A: The "value derived from the use of money over time as a consequence of investment and reinvestment"…

Q: Explain Anti-dilutive Security

A: Explanation to Securities Securities are referred to as the tradeable financial instruments which…

Q: Explain constant prepayment assumptions?

A: Prepayment refers to the settlement of debt before its actual due date. The model which determines…

Q: Compare IRR with MIRR method

A: Internal Rate of Return (IRR) is the rate at which the present value of expected cash inflows is…

Q: What is the Black Scholes Model?

A: Black Scholes Model is an option pricing model.

Q: What are the advantages of the scattergraph method over the high-low method? Thehigh-low method over…

A: Introduction: Cost accounting is beneficial since it can demonstrate where a corporation spends…

Q: Are these good advantages and disadvantages about RRSP’s? What can I include and remove?

A: RRSP or registered retirement savings plan is a retirement savings plan for employees and self…

Q: Explain about the Black–Scholes model.

A: Black Scholes option pricing model is probably the most commonly used option pricing model in…

Q: Why is the NPV preferred over the IRR?

A: Net Present Value is a method of finding the profitability of a project by discounting future cash…

Q: How are OLTP and OLAP different? Provide some examples to explain.

A: Definition; Computer-based information system: Computer-based information system refers to the…

Q: What is modified breakeven analysis?

A: Break even analysis refers to the financial computation that weights the new business cost, product…

Q: ) What deficiencies in IRR can be overcome by using MIRR?

A: Introduction : Internal rate of return, commonly referred to as the IRR, can be understood as the…

Q: Formula for put call parity?

A: Put call parity Put-Call parity defines the value of same class European put and call options. Put…

Q: How can you partically alleviate the various drawbacks of IRR?

A: Internal rate of return (IRR) is one of the capital budgeting techniques which is used to measure…

Q: advantages and disadvantages of the scattergram method as compared to the high-low method?

A: Solution High-low method takes high level activity and low level activity and measure the total cost…

Q: What are the advantages and disadvantages of  LIFO?

A: Last-in-First-Out: In Last-in-First Out method, the costs of last purchased items are considered as…

Q: What are the advantages and disadvantages of using MUS? Under what conditions is it best used?

A:

Q: What is the value of Po?

A: Annuity is referred to a cash payment being made at regular intervals. It is a widely used concept…

Q: What is multiple IRRs?

A: Multiple IRRs IRR is a discounting rate at which an amount of investment equals PV of the future CF.…

Q: Name two different ways that MPTBs can be overcollateralized

A: The MPTBs are viewed as hybrid securities. Such bonds have qualities of mortgage backed bond (MBB)…

Q: Describe the fundamentals of Replacement-Analysis?

A: Replacement analysis is the process where it is determined whether it would be beneficial to replace…

Q: Explain the limitations of CAPM.

A: A mathematical model that describes the link between a security's expected return and risk is…

Q: What are the CVP assumptions?

A:

Q: Explain partitioning the IRR?

A: IRR partition tool is an important tool in finance. This tool is a very suitable if one wants to…

Q: What are valid weaknesses of NPO?

A: Not for profit organization have certain weaknesses. some for them are- 1. Limited Purposes In order…

Q: Explain Replacement-Analysis Fundamentals?

A: Replacement-analysis fundamentalUnder this, the decision regarding the replacement of obsolete as…

Q: What is the iceberg effect? How can CASE tools help to minimize this phenomenon?

A: The Iceberg Principle or Iceberg Theory is a hypothesis that proposes that we can't see or recognize…

Q: Analyze the potential disadvantages of the LCNRV method

A:

Q: straight line method?

A: Depreciation = (Historical cost - Salvage Value)/Useful life  Book Value of Asset = Historical cost…

Q: How is VaR used to limit risk?

A: Value at Risk (VaR) a statistical tool which measures and quantifies financial risk a firm or…

Q: What are the advantage  of the scattergraph method over the high-low method? The high-low method…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: Explain Variation on the Preferred IRR and IRR Lookback?

A: The internal rate of return (IRR) is the measure used in the financial analysis of an investment…

Q: What advantage does scenario analysis have over sensitivityanalysis?

A: In finance, we are required to analyze the change in value of one variable over the change in the…

Q: What are practical weaknesses of NPO?

A: Organizations are described as business units which are established by the individuals, or group of…

Q: How is breakeven analysis different from CVP analysis?

A: Breakeven analysis: It helps to analyze the break-even level of company that is, the level of…