Thursday 15 September 2011

Divisible and Non Divisible Project



Divisible Projects:-

The divisible project mean that company can take some part of project. it means that some project are completed in full and other is taken in part. This concept is maximize utilization of fund in fact full utilization of fund.
There is process to select the projects
  1. The Profitability index of each project is calculated
  2. on the bases of profitability index calculation projects will be ranked.
  3. Select a combination with maximize the NPV
Non Divisible Project:-

The project can be undertaken or refused . The project can not be undertaken into parts.
  1. Work out the possible combination
  2. Select a combination to maximize NPV

1 comment:

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