Sensitivity analysis is a good technique for forecasting the attention of management on critical variable and showing where additional analysis may be beneficial before finally accepting a project. It does not directly measure risk and it is limited by only being able to examine the effect of a change in one variable, while the others remaining constant, an unlikely occurrence [...]
In this article we will discuss about:- 1. Salient Features of infrastructure Finance 2. Institutional Finance for Infrastructure Sector 3. Take-Out Finance 4. Sources Finance 5. Bonds 6. Differentiated Features 7. SEBI Regulations as to Infrastructure Development Funds (IDFs) 8. RBI Guidelines as to Infrastructure Development Funds (IDFs). Salient Features of Infrastructure Finance: Traditionally, government has been the sole financier [...]
There are several methods which are used to evaluate capital budgeting decisions. The techniques are: 1. Payback Period 2. Average Rate of Return 3. Net Present Value Method 4. Profitability Index 5. Discounted Payback Period 6. Internal Rate of Return 7. Modified Internal Rate of Return 8. Equivalent Annualized Cost/Benefit Method. 1. Payback Period: It refers to that period within [...]