Purchasing Analysis

Purchasing Analysis

  • Submitted By: lyfe2020
  • Date Submitted: 03/09/2015 1:56 PM
  • Category: Business
  • Words: 744
  • Page: 3
  • Views: 1

Discuss the application of time value of money concepts used in evaluating purchase decisions?

The time value of money concept is a dynamic instrument in making an important decision with the buying an equipment. Analyzing the costs of a purchase is made through discounted cash flow (DCF) analysis. The DCF is a cash flow summary that has been adjusted to reflect the time value of money. One must compare the alternatives and assume that by buying an equipment that the depreciation and salvage value must also be considered when conducting a purchasing analysis.


Discuss the application of time value of money concepts used in evaluating purchase decisions?

The time value of money concept is a dynamic instrument in making an important decision with the buying an equipment. Analyzing the costs of a purchase is made through discounted cash flow (DCF) analysis. The DCF is a cash flow summary that has been adjusted to reflect the time value of money. One must compare the alternatives and assume that by buying an equipment that the depreciation and salvage value must also be considered when conducting a purchasing analysis.


Discuss the application of time value of money concepts used in evaluating purchase decisions?

The time value of money concept is a dynamic instrument in making an important decision with the buying an equipment. Analyzing the costs of a purchase is made through discounted cash flow (DCF) analysis. The DCF is a cash flow summary that has been adjusted to reflect the time value of money. One must compare the alternatives and assume that by buying an equipment that the depreciation and salvage value must also be considered when conducting a purchasing analysis.


Discuss the application of time value of money concepts used in evaluating purchase decisions?

The time value of money concept is a dynamic instrument in making an important decision with the buying an equipment. Analyzing the costs of a purchase is made through...

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