Dear Sir,
Please explain the below points
Cost of Capital
Present Value
Rate of Return
Appreciate your Help.
3 Replies
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 01 September 2022
Cost of capital may be considered as finance / interest costs towards borrowed capital
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 01 September 2022
Cost of capital is the minimum rate of return or profit a company must earn before generating value.
Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Present value takes the future value and applies a discount rate or the interest rate that could be earned if invested.
Rate of return (ROR) is the loss or gain of an investment over a certain period, expressed as a percentage of the initial cost of the investment.
Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Present value takes the future value and applies a discount rate or the interest rate that could be earned if invested.
Rate of return (ROR) is the loss or gain of an investment over a certain period, expressed as a percentage of the initial cost of the investment.
sabyasachi mukherjee
(27574 Points)
Replied 01 September 2022
Cost of capital is the cost incurred for maintaining the capital . There are two ways of maintaining cost of capital ...Weighted average cost of capital and cut off rate . Cost of debt , cost of equity which are being calculated on the basis of certain assumptions.
PRESENT VALUE OF MONEY IS FV/(1+R)^n
Today you hv invested some amount of money
what will be the value of same amount of money after 5 years.
PRESENT VALUE OF MONEY IS FV/(1+R)^n
Today you hv invested some amount of money
what will be the value of same amount of money after 5 years.
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