Businesses often struggle to choose between multiple investment projects with different cash flow patterns and risk profiles.
Many problems are adapted from the official exam papers of professional bodies like the Institute of Cost Accountants of India and the Institute of Company Secretaries of India.
While many websites claim to offer a free PDF of this title, most are either: The Solution in the Book: The PDF section
Choosing between NPV (Net Present Value), IRR (Internal Rate of Return), and Payback Period when cash flows are uncertain. The Solution in the Book: The PDF section on "Risk Analysis in Capital Budgeting" includes problems on Sensitivity Analysis, Scenario Analysis, and the Standard Deviation of expected returns. He specifically solves the conflict between NPV and IRR rankings for mutually exclusive projects.
To solve resource allocation issues, Kishore advocates for techniques beyond simple payback periods. "Financial Management: Problems and Solutions" by Ravi M
"Financial Management: Problems and Solutions" by Ravi M. Kishore is a comprehensive book that provides a detailed analysis of various financial management concepts, problems, and solutions. While the book has some limitations, it is still a valuable resource for students, professionals, and practitioners in the field of finance.
Finding the break-even interest rate for projects. IRR (Internal Rate of Return)
Struggling to maintain enough liquidity for daily operations without over-investing in idle assets.
Assessing the absolute value added to the firm.