Mass flow rate

According to the estimates available, Arvind will sell approximately 80 million metres of fabric (includes domestic value-added and plain fabrics as well as exports) for the year 1997-98. This is an increase of 8.92 per cent over the last year when it sold approximately 74 million metres of fabric. The trouble is that this growth is too less. Its sales forecast and viability required it to function at 80 per cent of the built-up capacity. That meant an output of at least 100 million metres (of…

policies as a source of raising funds in an organisation. • The internal rate of return (r) or (IRR) of the firm is constant and does not change. This means that the diminishing marginal efficiency of investments is ignored. • There is a constant cost of capital; the discount rate (k) for the firm remains constant. Thus, Gordon’s model also ignores the effect of a change in the firm’s risk-class and its effect on the discount rate (k). • The firm and its stream of earnings is constant and…

2. Statement of changes in Financial position It includes a Funds Flow Statement and a Cash Flow Statement. Funds flow statement shows the sources and applications of cash and cash equivalents during a period. Objectives of preparing a Financial Statements (i) To present a true and fair view of the financial performance (i.e.…

QUESTION 2 2.1 Discuss the THREE key functions of money in an economy. Mohr P. and associates, (2015), indicates that money serves as an important part of our everyday life. Money is any good that is widely accepted in exchange of goods and services, as well as payment of debts. The 3 Key functions of money in an economy can be described as follows: 1. Medium of exchange can be defined as money that is used for buying and selling goods and services and if there was no money, goods would…

1.0 Introduction CVP also known as Cost-Volume Profit analysis is a method used to calculate and determine break-even point of cost and volume of goods in a business and for management control (Kim Tan, 2011). This is better known as when total revenue equals to total costs and managers find this analysis useful when determining short-term business descisions. When a company hits break-even point, there will be no profit and no losses. Break-even is what most new start up companies want to…

reinvested by the shareholder further, to get higher returns. Walter’s formula to determine the market price per share (P) is as follows: P = D/K +r(E-D)/K/K Where P – Market price D – Dividend per share E – Earning per share K – Cost of equity r – Rate of return on investment 3) Signaling Theory Ross (1977) argued that in an inefficient market, management can use dividend payment to signal important information to the market which is only known to them. If management increases dividend,…

is to determine whether Ocean Carriers should launch the two year production of a new capsize carrier incurring costs of $39 million. To thoroughly analyze this decision, various factors should be considered such as net present value of future cash flows, current and future expectations of supply and demand determining costs of production and expected revenues from future orders. It is recommended to minimize costs that Ocean Carriers consider producing the capsize carrier in Hong Kong as it…

A. LIQUIDITY RATIOS 1. CURRENT RATIO The current ratio measures a company’s ability to pay its short term obligations. The current ratio of Adani Power Ltd. has increased over the past three years. The Current ratio of Adani Power is constantly below 1, meaning that the current liabilities are more than the current assets. This suggests that the company would be unable to pay off its obligations if they came due at that point. This indicates that the company is not in good financial health. 2.…

Warren Thatcher’s Build a container Home Unleashes the secrets of Building Container Homes Have you ever considered building a home using a shipping container? Or have you ever weighed the options available to you if you want to build an affordable home in record time? Well, you may want to learn about Warren Thatcher’s Build a container home. Warren Thatcher’s Build a Container Home, is a DIY comprehensive guide for building a container home from scratch. His guide touches on the cheapest and…

Typically, it is easier to obtain lease financing than loans from commercial lenders. It makes cash flow management easier because we will have to pay regularly at the same rate. It is cheaper and easier than some other sources because we don't need to pay the entire amount upfront. Leasing is inflation friendly: as the costs go up over five or ten years, we still be paying the same rate as when we began the lease, therefore making our money stretch farther. Although leasing allows us to avoid…