Selected elements of international managerial accounting (1) - cost of capital
Weighted average cost of capital
Considerations on the cost of capital should commence with the capital structure of an economic entity.
The structure should be understood as t
Description: An economic entity has been considering starting a long term bank deposit. The bank
offered 7% annual interest. Calculate the future value of PLN 10,000 allocated to the deposit. Tax
on deposits is 20%, payable at maturity. Another opt
Description: Enterprise Alfa has an opportunity to invest their cash surplus in high-yield Brazilian
bonds. Annual interest on bonds is 19%. How much should an enterprise invest to gain PLN
300,000 after five years? Calculate future value of PLN 20
Concepts of maintaining capital over time simple methods
Interest rate, an introduction
The discussion on maintaining capital in time should commence with the definition of the
interest rate. Interest rate is the price charged by a lender to a borrower fo
Economic effieciency of an investment project
Types of methods for the efficiency measurement of investment projects
In Poland and in the world at large, there are applied various methods of measurement of
efficiency of investment projects.
Some of them m
Description: Kompet partnership intends to invest PLN 2,000,000 over four years in a new venture.
What capital should the partnership save each year, so that it could finance the project in such a way
that its current and future structure of capita