CEA Level 1 - Suenmary Notes ee see ents oh PONS R2Io a a C2 carn adc Ra le sy caida ice ikea ane oe See Dl OR ae ke are oe A ee ee Le re ae cine ; aS CA aL i ea Sa a a ell tia omen Rrra en aie ear bald Ce Cm es ce aa Core $. Nw product Om ed Shug saa Teen at ae cer cst sh orn k ) aac nc nnnLeaming Oukoms-B: Deserhe the basic prinuiples of capital Luctgoling 4 Cs in adi ee oe at Ce tC Lee + aa lot Cg fe Der aes Uy Ce . Simk costs ‘should nok be Conviclered nt a as SO ot Le a bas PUN oman ae cae dc al ieee iad CUB Time valu of Money is considered. Gashfows ax analyzed on after-dom lease. seieae cots we Captured in vale of veh nok cashftowe- Teen at ae cer cst sh orn k ) aac nc nnnAY Ouwtome C: Explain how the evaluation and seleckon 5 ics kal dd iad aoe GMa) Me an ne al ss eee MM a neon 9 " Eee em Una a POC en auch a heal ae ad ea he evalualed on clsolute basis. Care BR eal ad aed (ox aa Ce aaa be evalakd on relative basis. Ame on ine basis of Coe Sequence Om ors Should Le considlerd. Funds may be unlimited or rar Ty ytd TAU SC a alla Sr er Ces Teen at ae cer cst sh orn k ) aac nc nnnENROLL | ne ens CFA Level 1 P _ Cae tn BN a RR a) Re ee mca fees Ree Nee ie earner eee een Ny Oa eae Ca capital projeck. Na) 1. NPV = PV of Cash Inflow! — PV a Cath Owdflows- Coe a Oa a Soe od Coe ato Cd ae ce Sry Boer aa a as Ua SO eA mE ga) PEN oe ren nO et Ss Acca aon co Perec ENC OETO} ej 3. TR ERR > Reqd vate of rehem =} Accept TAR < Regd rake of Tehun => Reject. Coe a aS CONTACTUS: = POAT Lee Yay a1 eX Ly ml aca eet Coen EDUTORSINDIA@GMAIL.COM (E-Mail) Ce eneaerioagy Facultyieceaaso™ pC Ad ferod = No. Tee ea ee LC am | ane ale ors Net meamire SHORTER THE as Ee Ta ae PR Cc PN ala See ak a Ce el oll Payback period tat Considers TVM. 2 Discounked payback. peiod > Pagar period. EL ra tai me) Led Nev 1. PL = PVo} Tnflows /Pv of Ovdffons = I+ awe FT eS Rel eae Teen at ae cer cst sh orn k ) aac nc nnnLooming Owcome E+ Explain the NPV projile, Cornpax tne NPv & IRR methods wher ee PECTS ere een eres Sra aa aaa poe ee problem’ ascounted voith CA, ttacsiacedincent NPV_ PROFILE AbVATAGES 3 DISADVATAGES OF NIPV Pei MI ini Leica Me ait tlie Salil ibd Na 1: NPV is theovene Oe @ CNA LR LUE ee eee a a Bee ee ADVANTAGES & DISADVAWTAGES OF IRR OE a ag Sie CRN Sar Noes T Yea et aed a COSA a loam) ales 3 cad G) Mulkple or no PRR beomse Unconventiond cashfion pattem. id 8 irae) Ree Ae RL Teen at ae cer cst sh orn k ) aac nc nnnN10) tc cael rca ee Cand CFA ana Change im tre. Company's sheen price eT) Cea a mC tl shoute| Cores eet ers es ar eee Ca DeSerea ea co Ne aces Ea CONTACTUS: : ERLE dea) EDUTORSINDIA@GMAIL.COM (E-Mail) Faculty cefolt AGN TN