6. The Philippine Institute of Civil Engineers is planning to construct its own building. Two proposals are being considered: a. The construction of the building now to cost P400,000 b. The construction of a smaller building now, to cost P300,000 and at the end of 5 years, an extension to be added to cost P200,000. Which proposal is more economical if interest is 20%, depreciation is disregarded and by how much?

Q: What is Internal Rate of Return - Variable Cash Flows with Reversion?  Please provide examples.

A: The internal rate of return is the one of the discounted techniques of capital budgeting which is…

Q: Describe about the cash flow risk.

A: Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a…

Q: Describe the direct method and indirect method of preparing the cash flow statement, and discuss the…

A: The cash flow statement is a financial statement that shows the inflows and outflows of cash and…

Q: w does stretching out AP enhance cashflow?  be specific in terms of operating cashflo

A: Cash flow are very important for any firm because without cash no business can survive for much…

Q: Define cash flow hedges.

A: Derivatives:   Derivative is a product whose value is derived from underlying assets called base.…

Q: Define cash-basis net income.

A: Cash basis of accounting: Cash basis of accounting refers to the recognition of financial…

Q: Drw a Cash flow diagram for comparing cost-only?

A: Initial costs  The occurrence of cost at the time of design and the construction of the project.…

Q: Define the net operating cash flow.

A: Net operating cash flow is the the cash generated by a company through its operating activities…

Q: What is the impact of working capital on the cash flow statement?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: what are the operational aspects of the discounted cash flow (DCF) method?

A: What Is Discounted Cash Flow (DCF)?  Limited income (DCF) is a valuation technique used to assess…

Q: How can we determine the net cash flow from operations?

A:

Q: Give some examples of Discounted cash flow?

A: Discounted cash flow: It's a time value method to calculate the project or investment value  using…

Q: Give a specimen of cash flow statement of indirect method using imaginary figures?

A: Main purpose of financial statements is to review and analyse position of the business as on…

Q: What is free cash flow, and how is it calculated?

A: Free cash flow:Free cash flow is defined as an evaluation of financial performance of a company. It…

Q: Define Cash-basis accounting.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Which of the following methods consider the time value of money? A. payback and accounting rate of…

A: Time Value of Money The time value of money is the concept that money you have now is worth more…

Q: The Cash Flow Statement and all of its components should be defined

A: Introduction: The cash flow statement is created to capture the cash flow from different operations…