Lakhasly

Online English Summarizer tool, free and accurate!

Summarize result (50%)

1.A case study could involve comparing two projects with different payback periods to demonstrate their relative attractiveness and risk profiles.Capital Budgeting Techniques:

  • Profitability Index (PI): PI measures the ratio of present value of future cash flows to the initial investment.However, while high operating leverage can amplify profits in good times, it also increases sensitivity to changes in sales volume.Practical examples could include comparing the evaluation of two investment projects with different risk profiles, where one requires a higher cost of capital due to greater perceived risk.For example, comparing two projects with different initial investments and cash flows to determine which one offers better value.Shorter payback periods are generally preferred as they indicate quicker recovery of the initial investment.In a downturn, a company with high operating leverage will experience a sharper decline in profits due to the fixed costs.A case study could involve comparing two companies in the same industry, one with high operating leverage and the other with low operating leverage, during different economic cycles to demonstrate these effects.2.3.


Original text



  1. Operating Leverage Impact on Break-even Point: Operating leverage refers to the proportion of fixed costs in a company's cost structure. A higher degree of operating leverage means a higher proportion of fixed costs, which results in a lower break-even point. For example, a manufacturing company with high fixed costs (e.g., machinery, rent) will have a lower break-even point compared to a service-based company with lower fixed costs. However, while high operating leverage can amplify profits in good times, it also increases sensitivity to changes in sales volume. In a downturn, a company with high operating leverage will experience a sharper decline in profits due to the fixed costs. A case study could involve comparing two companies in the same industry, one with high operating leverage and the other with low operating leverage, during different economic cycles to demonstrate these effects.




  2. Cost of Capital in Investment Project Evaluation: The cost of capital is the minimum rate of return that a company must earn on its investments to satisfy its shareholders. It consists of both debt and equity components. A higher cost of capital means that investment projects must generate higher returns to be considered acceptable. For example, if a company's cost of capital is 10%, any investment project must generate returns greater than 10% to be worthwhile. Practical examples could include comparing the evaluation of two investment projects with different risk profiles, where one requires a higher cost of capital due to greater perceived risk.




  3. Capital Budgeting Techniques:




    • Profitability Index (PI): PI measures the ratio of present value of future cash flows to the initial investment. A PI greater than 1 indicates a positive NPV, meaning the project is expected to generate value. For example, comparing two projects with different initial investments and cash flows to determine which one offers better value.


    • Payback Period: Payback period measures the time it takes for an investment to pay back its initial cost. Shorter payback periods are generally preferred as they indicate quicker recovery of the initial investment. A case study could involve comparing two projects with different payback periods to demonstrate their relative attractiveness and risk profiles.




Summarize English and Arabic text online

Summarize text automatically

Summarize English and Arabic text using the statistical algorithm and sorting sentences based on its importance

Download Summary

You can download the summary result with one of any available formats such as PDF,DOCX and TXT

Permanent URL

ٌYou can share the summary link easily, we keep the summary on the website for future reference,except for private summaries.

Other Features

We are working on adding new features to make summarization more easy and accurate


Latest summaries

عام. يمكن القول...

عام. يمكن القول إن نظام المعلومات يعزز شفافية السوق من خلال توفير المعلومات اللازمة ويعزز تداولية ال...

In this present...

In this presentation, I will focus on main points: First, I will provide a definition of the concep...

في خسائر فادحة ...

في خسائر فادحة للذرة، والمحاصيل السكرية، والأعلاف النجيلية، والكينوا. لمواجهة هذه التحديات بفعالية،...

أدى الإنترنت وا...

أدى الإنترنت والتطور الرقمي إلى إحداث تحول جذري في أساليب التواصل وتبادل المعلومات بين الأفراد. فنحن...

تم في هذا المشر...

تم في هذا المشروع تطبيق مكونات الواجهة الأمامية (Front-end) والواجهة الخلفية (Back-end) الشائعة لضما...

تُعد عدالة الأح...

تُعد عدالة الأحداث من أهم القضايا التي تشغل الأنظمة القانونية والاجتماعية في مختلف دول العالم، نظرًا...

كان تحالف ديلوس...

كان تحالف ديلوس في البداية قوة دفاعية ناجحة، لكنه تحول مع الوقت إلى أداة للسيطرة الأثينية، مما أدى إ...

--- ### **التع...

--- ### **التعريف:** عوائق التعلم التنظيمي هي **عوائق إدراكية، أو ثقافية، أو هيكلية، أو شخصية** تم...

أولا شعر الحزب ...

أولا شعر الحزب الزبيري بدا يتنصيب عبد الله بن الزبير نفسه خليفة على الحجاز، واستمر تسع سنوات، وانته...

ث‌- الصراع: يع...

ث‌- الصراع: يعتبر من المفاهيم الأقرب لمفهوم الأزمة، حيث أن العديد من الأزمات تنبع من صراع بين طرفين...

تعرض مواطن يدعى...

تعرض مواطن يدعى عادل مقلي لاعتداء عنيف من قبل عناصر مسلحة تابعة لمليشيا الحوثي أمام زوجته، في محافظة...

زيادة الحوافز و...

زيادة الحوافز والدعم المالي للأسر الحاضنة لتشجيع المشاركة. تحسين تدريب ومراقبة العاملين الاجتماعيين...