• Research Paper on:
    Capital Risk Assessment Proposal

    Number of Pages: 11

     

    Summary of the research paper:

    This 11 page paper is a proposal for studing the link between the use of capital budgeting risk assessment tool, such as net present value (NPV), internal rate of return (IRR) and the Monte Carlo. The aim is to assess if there is a link between the use of analysis and the returns created by a company measured by the return on equity and the return on assets. The bibliography cites 8 sources.

    Name of Research Paper File: TS14_TEcapriskp.rtf

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    Unformatted Sample Text from the Research Paper:
    on assets and the return on equity. The report, commissioned by an investment firm may also be of benefit to any stakeholders that have a economic interest in a  company. The research is limited to small and medium sized companies for practical purposes and is not fully stratified. The firms that have taken place have also had their confidentially  assured. The paper assesses the number of tools used for capital budgeting risk assessment and compares to this to the financial results. The results of this qualitative research is expected  to help further research and indicate the benefit of capital budgeting which will add value to the decision making processes of investors, creditors as well as a firms management. However,  it is also limited as there are many different influences of financial performance that are not related to this type of risk assessment. Table of Contents TABLE OF  CONTENTS 2 1. TERMS OF REFERENCE 3 2. LITERATURE REVIEW 5 3. RESEARCH METHODOLOGY AND INSTRUMENTS 9 4. INTERPRETATIVE FRAMEWORK 12 5. IMPLEMENTATION 15 6. REPORTING CONSIDERATIONS 17 REFERENCES 18  1. Terms of Reference There have been many modelled developed with the motivation of assessing the likely movement of a firms permanence in the future either  with the use of share price movements or looking directly at the profit levels. The ability to forecast is often a mixture of science, fact and instinct or feelings. The  models that have been developed look at the past performance of a company, it may use a range of ratios, consider aspects such as available information in the company and  the industry. However when we look at these models they are based in financial measures with little direct consideration of the methods that management are using to make the financial 

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