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In which of the approaches of calculating operating cash flows do we start with the net income and add back any non-cash deductions such as depreciation? Multiple choice question. Bottom-up approach Tax-shield approach Average accounting return approach Top-down approach

In which of the approaches of calculating operating cash flows do we start with the net income and add back any non-cash deductions such as depreciation? Multiple choice question. Bottom-up approach Top-down approach Tax-shield approach Average accounting return approach

Help question 18

In the discounted cash flow (DCF) method, which of the following is the correct formula for calculating Unlevered Free Cash Flows (UFCF)?  A)EBIT (1-tax rate) + Depreciation and Amortization (D&A) + Investment in Net Working Capital (\Delta NWC) + Capital Expenditure (CapEx)  B)EBIT (1-tax rate) – D&A – \Delta NWC – CapEx C)EBIT (1-tax rate) + D&A – \Delta NWC + CapEx D)EBIT (1-tax rate) + D&A – \Delta NWC – CapEx E)EBIT (1-tax rate) – D&A + \Delta NWC + CapEx

Which option is correct?

Distinguish between annual income in the presence of depreciation and annual operating cash flow?

While calculating Free Cash Flow (FCF), capital investment expenditure is : a Subtracted from from EBIT(1-t) +(Depreciation +Amortization) b Subtracted from EBT. c Subtracted from EBIT(1-t) d Subtracted from EBIT.

When completing the statement of cash flows using the indirect method, an increase in an asset account would be a corresponding _____ to the net income adjustment

Which of the following phrases best describes the term " actual cash value"? a. market value b. appraised value c. replacement cost less depreciation d. original cost less depreciation

Which of the following is the equation for estimating operating cash flows (OCF) using the tax shield approach? Multiple choice question. OCF = (Sales − Costs) × (1 − Tax rate) + Depreciation × Tax rate OCF = (Sales − Costs) × (1 − Tax rate) OCF = (Sales − Costs) + Deprecation OCF = (Sales − Costs) × Tax rate + Depreciation × Tax rate

Which of the following is the correct definition for present value (PV)? Select one: a. The current value of the sum of all the past cash flows given a specified rate of return. b. The current value of the sum of all the future profits made by the company with a specified rate of return. c. The current value of a future sum of money or stream of cash flows given a specified rate of return. d. The future value of the sum of all the future cash flows without a specified rate of return.

1) When converting accounting profits to cash flows, we broadly deal with depreciation and working capital as follows:   Depreciation               Working capital       A) add add at the start of the project,deduct at the end.       B) deduct add at the start of the project,deduct at the end. C) add deduct at the start of the project,add at the end. D) deduct deduct at the start of the project,add at the end.

Which of the following adjustments is made to calculate cash flow from operating activities?   Question 6 options:   depreciation is deducted from net profit for the year   income tax expense is added back to net profit for the year   depreciation is added back to net profit for the year   dividends are deducted from retained earnings

Which method measures depreciation directly? Oa. Sales comparison Ob. Cash equivalency O c. Age-life Od. Capitalized value