Finance

This category covers all kinds of topics in finance including corporate finance and financial management. The topics on financial institution and stock exchange will also be included.

Annualized Net Present Value (ANPV)

When comes to unequal-lived and mutually exclusively projects, the annualized net present value is used as a decision rule for the project investment appraisal or capital budgeting decision or techniques. This is one of the capital budgeting refinements that we commonly encounter and use for the investment appraisal. In this article, we cover in detail

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Real Options in Capital Budgeting

Real options in capital budgeting are one of the special forms for capital budgeting refinements. In a traditional procedure of the capital budgeting decisions without the real options, we simply apply any appropriate decision techniques; for instance, NPV or IRR and make the decision. Recently, the real options have emerged and it plays a vital

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Revolving Letter of Credit

A letter of credit (LC) covers the default risk for the exporter. The issuer of LC acts as an intermediary and guarantees the payment in case its customer defaults. Under normal circumstances, the letter of credit facility is issued once and with specified terms. The bank verifies the creditworthiness of the applicant and issues a

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