Category Archives: Capital Budgeting Techniques

Reverse Mortgage Payment Options

Reverse Mortgage Payment Options Choose The Best Reverse Mortgage Payment Plan Determining Your Requirements The reverse mortgage plan which you choose will have a great impact on how much money you will be receiving in the long and short run, how quickly you will be using up your home equity and how the reverse mortgages… Read More »

Home Equity Conversion Mortgage

Reverse Mortgage Scheme Home Equity Conversion Mortgage Tips For Buying A Home Using Reverse Mortgage Scheme Reverse mortgages correlate with the refinancing an existing home but they can also be used for buying a new home. Most senior citizens take advantage of reverse mortgage in order to help them stay in their home when they… Read More »

Mortgage Rate Lock

Mortgage Lock Locking In the Mortgage Rate The fear of rising interest rates in the context of a mortgage for a borrower is always a risk factor and this may end up increasing the monthly payments required to be made. Not only the risk lies here in but also in the case of the entire budget… Read More »

Simple Interest Mortgage

Simple Interest Mortgage All You Must Know About Simple Interest Mortgage There are two kinds of mortgage settlements these days prevailing in the markets, one is the standard mortgage and one is the simple interest mortgage. Despite the fact, that the difference between these two kinds of mortgages lays in the context of the interest… Read More »

Applying for a Mortgage?

Key Steps To Attaining A Mortgage Applying for a Mortgage? When it comes to getting into the terms of the mortgage, things need to be very carefully handled as this process is not a piece of cake and soundness of every single matter and detail is an essential thing. However, when one needs to get… Read More »

Difference between Accounting Profit and Economic Profit

Difference between Accounting Profit and Economic Profit How does economic profit differ from accounting profit? Here is a very simple example that reflects the difference between accounting profits and economic profits and, and thinking properly or improperly about the process of value creation. That is, suppose that as a company, you invest $1 billion in R&D, big amount of… Read More »

Who are the Stakeholders?

Who are the Stakeholders? Stakeholders are more or less by definition anybody that has a role to play in the process of value creation. So besides the shareholders, the employees have a role to play, the suppliers have a role to play, the society in which the company does business; they have a role to play. In other words, stakeholders… Read More »

Difference between Overbought and Oversold

Overbought Position Overbought means that a bank’s assets and purchases of a particular foreign currency exceed its liabilities and sales of that currency. Oversold Position Oversold means that a bank’s liabilities and sales in a particular foreign currency exceeds the assets and purchases of that currency. In order to avoid risk on account of exchange… Read More »

Sensitivity Analysis Accounting

Sensitivity Analysis Today I want to turn to sensitivity analysis. In other words, having set up our DCF and having completed all the inputs, now, let’s push it around a little bit and just see how robust and sensitive our valuation is. So we can make the most informed decision possible. So let’s get started. And we’re going to start with… Read More »

Decision criteria and free cash flow

Decision criteria and free cash flow Last time we applied our forecast drivers to our free cash flow formula to forecast free cash flows for our tablet project. Today I want to take those free cash flows and apply our different decision criteria to come up with decisions regarding our project.  In particular, we asked, what do we do with… Read More »