Discounted Cash Flow Techniques
Payback period Disadvantages: Considers cash flows within the payback period only: says nothing about project asa whole* or the profitability Ignores
Payback period Disadvantages: Considers cash flows within the payback period only: says nothing about project asa whole* or the profitability Ignores
The role of Financial Management Test the FEASIBILITY of the proposed strategy IS IT POSSIBLE TO PUT INTO PLACE? Are the financial resources available
FINANCIAL MANAGEMENT One of the key areas of financial management is the management of the resources An important resource being the assets that are e
Limitations of Solow model (cont.) - The model cannot explain the empirical significant relation between saving rates and technological progress Endog
Role of savings empirical Solow’s surprise: more than savings This model most often attributed to Robert Solow (1956) – US Nobel prize winner …. but T
What if labour force grows? Accumulation eqn now Analysis in growth rates Can illustrate above with graph of gk and k Rise in savings rate (s0 to s1)
Neoclassical growth model Model growth of GDP per worker via capital accumulation Key elements: Production function (GDP depends on technology, labour
Growth Determinants (1) Savings and Investment: from the circular flow we see household and firms save part of their income. Savings flow in the finan
Why are national growth rates so similar? Why do some countries experience spectacular levels of growth? 1/3 Growth rates across the world 65-95: “spe
Economic Growth Economic growth and development Why are national growth rates so similar? Why do some countries experience spectacular levels of growt