Project sponsors often get confused regarding continued funding of the project, while, in reality, the project’s objective is lost and is no longer relevant. For example, after spending over 75 million USD on the construction of the Shoreham Nuclear Plant, the company fell committed to funding, and the cost escalated to 5 billion USD, and …
Resources are limited, so businesses must make the right decision to use available resources. Furthermore, to define the basis of economic decision-making, it is crucial to consider a specific rate of return (ROR) so that its capital achieves a return on operations; we call this the cost of capital. A project’s internal rate of return …
Definition: The Discounted Cash Flow (DCF) analysis estimates the money an investor would receive from an investment, adjusted for the time value of money. The time value of money shows that a dollar the business has today is worth more than a dollar they receive tomorrow. What is Discounted Cash Flow (DCF)? Discounted cash flow …
Apple Inc. is one of the biggest consumer electronics brands in the world. Headquartered in America, it deals in smartphones, personal computers, software, tablets, computer peripherals, etc. It holds a 15.6% market share in its industry with a total market capitalization of 2.2 trillion USD. As of 2019 statistics, over 45% of Americans use an …