Month: July 2025

Net Present Value and Internal Rate of ReturnNet Present Value and Internal Rate of Return

What is Net Present Value (NPV)? Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project. It represents the difference between the

Sound Risk Management System.Sound Risk Management System.

Briefly describe the elements of sound risk management system. A sound risk management system is essential for financial institutions to identify, assess, monitor, and mitigate risks effectively. Banks must implement

What is operating leverage?What is operating leverage?

Operating Leverage Operating leverage refers to the degree to which a company uses fixed costs in its operations. It measures how changes in sales volume affect operating income. A business