This paper presents a simple Excel model that provides measures of the standard deviation of forecasted internal rate of return (IRR) given traditional data inputs such as annual cash flows, terminal values and equity. The model first calculates IRR using traditional discounted cash flow methods and then provides heuristic estimates of variability measured in terms of ‘‘high,’’ ‘‘low’’ and ‘‘mo...

Because in the theory of economics, the value of a company is based on the current value of future cash flows and profit is used as a substitute for cash flows, profit forecasting is of particular importance. In the research, the effect of rounding and revision in predicting earnings per share on the investors' attention in Iran has been investigated. After designing the investors' attention as...

since 2001 the adoption of iran accounting standards has become obligatory. this study by using a sample of companies listed in tehran stock exchange (tse) compares the value relevance of ten selected accounting variables in two periods, before mandatory adaption of accounting standards (1996-1998) and after that (2005-2007). in this study the researchers have tried to control the effect of eco...

In order to apply asset-liabilitymanagement techniques to property-liability insurers, the sensitivity of liabilities to interest rate changes, or duration, must be calculated. The current approach is to use the Macaulay or modified duration calculations, both of which presume that the cash flows are invariant with respect to interest rate changes. Based on the structure of liabilities for prop...

This paper presents the economic ordering policies of time-dependent deteriorating items in presence of trade credit using of discounted cash-flows (DCF) approach. In inventory analysis a DCF approach permits a proper recognition of the financial implication of the opportunity cost and out-of-pocket cost. In the inventory model, shortages are not allowed. In this study mathematical models are a...

Cash is a vital resource for airline companies, which are said to be operating on multinational level. From executing day-to-day operations exploiting new investment opportunities, companies must maintain an optimal level of cash. The amount cash depends number factors such as the company's activity level, current conjuncture and international markets. In this study, net flows changes in equiva...

With currently depressed milk prices, many Michigan dairy operations are struggling to meet current cash flow commitments. This article, the first of a series of articles addressing cash flow problems, examines ways to manage debt. The other articles to follow will explore profitability of the Michigan dairy industry, other methods for improving cash flow (including income tax management), unde...