In case of conflicting results, which may happen due to different timings of the cash flows then the selection should be done on the NPV basis.
This statement is not complete.
I agree that this is what they teach when starting, but later you will learn that there are more reasons of "disparity" and more advanced methods of tackling the disparities between NPV and IRR.
Refer some of my earlier posts on a similar topic here.
read some of his posts you will get it what i meant
and if don't have that much time then it is very clear for the above two
Mr @varunaron pls enlighten us as to what part do u not understand in the concept of curiosity? coz i think all the posts of the said user are very well within the intent & spirit of the thread...although cant say much about your posts (u dont want to answer the query dont do it...ur choice but whats the point of putting up useless posts!!!)
I hope i have made my point clear & if not feel free to PM me....
Mr @varunaron pls enlighten us as to what part do u not understand in the concept of curiosity? coz i think all the posts of the said user are very well within the intent & spirit of the thread...although cant say much about your posts (u dont want to answer the query dont do it...ur choice but whats the point of putting up useless posts!!!)
I hope i have made my point clear & if not feel free to PM me....
In internet forums such off topic posts are quite obvious, but there is always a reason behind it . I don't care whatever you or anyone else think about my posts. There should be distinction between Curiosity and Stupidity.
As Albert Einstein once said "Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe."
And to be more precise on the intent & spirit of the thread just think about "Why Finance" and just read the first post of this thread. Here the word "Finance" is really very important. In interviews, I used to ask two question like "define finance" and "how the different financial instrument fulfills finance process and its functions", i think i have asked more than 50 times but never got any satisfactory answer, all the guys were MBA and some of them with CFA Level I.
This "Why Finance" is not at all about what is A and What is B, instead of asking simple definitions here, why shouldn't one search for open source websites where every thing is free like www.investopedia.com, http://www.academicearth.org/subjects/finance etc.
We are here to help every1 Varun. Harsh is right there is nothing Inappropriate or uncalled for. We do our job. So, not an issue! Look at the brighter side of it because of the error or confusion now people know different types of RISK.
its really so sweet "now people know different types of RISK", actually i didn't like but liked in different manner and in good spirit.
Mad-Head, in this thread It would be great if the discussion is on practical issues of finance rather than what is a b and c, don't you think these things can be easily found in text books and through the Great Google.
Here i would like to say to everyone especially freshers "try to master Google/Internet search", like i have written many complex vba codes for financial models.
Here is a pdf document if anyone is interested in understanding how things are used in practice The Cost of Risks Essence Risk Quantification,i have also done similar modeling of Oil & Gas Sector.
Hahahahahahaha That was really nice I know most of us want to take FINANCE because it pays you WELL & I should say VERY WELL post your MBA/CFA. Because even I have never been able to understand the reason or logic why an IITian/Engineer wants to go for a MBA/CFA within 2-3 years post Engineering.Basic question: Why you spend 6-7 years of life in studying something that you are not going to LOVE or want to DO forever???? Sacrificing everything, the fear of failer, giving away everything JUST DO AN MBA/CFA??? (This is only a personal view)
@deejaygr8 said: puys what do you mean by loan pricing?? could any one tell me asap??
in short its about the valuation of interest rate applicable to loan, here its just not interest rate there are many factors that are considered before finalizing
@iwantgovtjob i dont think we can measure unsystematic risk but to calculate it we subtract systematic risk from the total risk as total risk comprises of sys risk + unsys risk.
actually>> TOTAL RISK^2(square) = SYS RISK^2 + UNSYS RISK^2
SYS RISK^2= BETA^2*VARIANCE OF MARKET
SO by subtracting sys risk square from total risk square we get UNSYS RISK SQUARE
