All of the following are true statements about the a gradient series of cash flow except the following: O The cash flows increase by the gradient step, G, every other period O The gradient step, G, is a constant value O The first gradient positive cash flow occurs at the end of the second time period O The series can be represented by the sum of a uniform series and a gradient series

Q: When calculating the present worth of a uniform series using the relationship P = A(P|A, i%,n), the…

A: P equals to A times the factor of P over A and this factor known as the Uniform Series of Present…

Q: ______sets upper and lower control limits of cash balance a. Baumols model b. Miller Orr model c.…

A: The two main models for cash management are: - Baumol's model  - Miller-Orr model

Q: why the 1st yr and 2nd yr, the pv of cash flow are same? what about 4th yr?

A: A bond is a security that pays a periodic interest (in this question annual coupon). At maturity the…

Q: How can we convert any cash flow elements in constant dollars into actual dollars?

A: The cash flow elements are the constant value that can be converted into actual value by adjusted…

Q: If you disounted a set of positive real cash flows with a nominal discount rate and inflation were…

A: Justification:Suppose the positive cash flows are discounted with the inflation rate, which is…

Q: Net cash flow is equal to

A: Net cash flow alludes to the variation between cash inflows and outflows over a specific period of…

Q: 1.A method of estimating property value by discounting on expected future cash flows to a present…

A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: In order to be consistent with Time Value of Money concepts , it is acceptable to add cash flows…

A: Amounts of money are worth more today than they will be in the future due to the concept of time…

Q: are three categories of cash flows: single cash flows, also referred to as “lump sums,” a stream of…

A: Annuities are very important in daily life and also in the retirement also because they provide…

Q: How to make monthly cash flow statement in Excel. Give me an example.

A: Cash flows statement is one of the financial statement which shows all cash inflows and cash…

Q: If the inflation rate is positive, the expected NPV of an investment will be:  A.understated if real…

A: The nominal discount rate will be reflection of the combination of real interest rate and the rate…

Q: O O A vertical arrow pointing up indicates a positive cash flow Time (1) is considered to be the end…

A: Cash flow diagram depicts when the cash inflows and cash outflows which are to be incurred at the…

Q: In general, there are several ways to address a particular sequence of cash flows in order to…

A: Present value is sum of present value of cash flows. Future value is sum of future value of cash…

Q: In a cash flow series regarding the gradient: Select one: O a. Uniform gradient signifies that an…

A: When cash flows of a series changes with a constant amount, it is knows as gradient series.

Q: How do we determine the PW for an infinite (or ~ almost infinite) uniform series of cash nows or a…

A: The PW for cash flow infinite uniform series is determined by the formula:

Q: How is IRR calculated with unequal net cash inflows?

A: Definition:   Internal rate of return method (IRR): Internal rate of return method is one of the…

Q: Payback method is Select one: a. None of the options b. Yield on investment c. PV of cash inflow- PV…

A: Payback method is one of the capital budgeting technique which helps in evaluating profitability of…

Q: The discount rate is the combination of what two types of discounting?   a. exponential and linear…

A: Discount rates are used for discounting the future cash flows. It helps in determining the time…

Q: Describe the process to find the mean and variance of the PW for the incremental cash flows?

A: Identify the Rate, project life. Then Incremental cash flows should be computed.

Q: Th e three major classifi cations of activities in a cash fl ow statement are: A . infl ows, outfl…

A: Solution:-   The three major classifications of activities in a cash flow statement are operating…

Q: In a few sentences, answer the following question as completely as you can. What are the four…

A: A cash flow statement is a financial statement that provides information about a company's cash…

Q: A series of equal cash flows at fixed intervals is termed a(n)   a. price-level index   b. present…

A: A price index is a normalized  weighted average of price relatives for a given class of goods or…

Q: In the net present method future, cash flows are discounted to their present value a)TRUE b) FALSE

A: Under net present value method all future cash flows are discounted to their present value .

Q: The most liquid money aggregate is? Select one alternative: M0 M1 M2

A: Solution Step (1) M0, M1 M2 In the united states, the money supply is classified by various…

Q: What is the name of the tool depicted in the picture below? Unequal Cash Flows (shown with payments…

A: Solution: Cash flow table is the table in which the periodic revenues and periodic costs are…

Q: The formula to compute free cash flow is

A: The formula to compute free cash flow is here:

Q: Label each of the following statements as either true (“T”) or false (“F”). An out-of-pocket cost…

A: Relevant costs: These costs can be defined as the costs that can be avoided if we choose over option…

Q: Find the following values, using the equations, and then work the problems using a financial…

A: Present Value: The idea of present value asserts that a sum of money in the here and now is worth…

Q: For any cash flow the below statement is: Pequivalent> Fequivalent Select one: O False

A: Cash flows are regular amount which gets from an investment.

Q: Which of the following is an advantage of the cash payback method? a. takes into consideration…

A: The objective of the question is to identify the advantage of the cash payback method among the…

Q: Present and Future Values of Single Cash Flows for Different Periods Find the following values,…

A: Formulas to calculate present values and future values are PV = FV / (1 + (r / n))nt FV = PV * (1 +…

Q: What adjustment is made to FCFE when calculating the terminal value in a Discounted Cash Flow (DCF)…

A: The objective of the question is to understand the adjustment made to Free Cash Flow to Equity…

Q: Cash flows are discounted from the future to the present. O True False

A: Net present value means the difference between the present value of cash inflow and present value of…

Q: Garage, Inc., has identified the following two mutually exclusive projects. a. What is the IRR for…

A: In order to determine if a project is financially feasible and viable or not we make use of capital…

Q: The primary formula for calculating operating cash flow is?

A: Cash flow from operating activities refers to the amount of cash generated by the operating…

Q: in general, positive cash flows are moved to the end of the interest period in which they happen.…

A: Flows of cash whether inflow or outflow in the business refers as cash flows, generally these flows…

Q: QUESTION 4 To construct a common-size cash flow statement, we can A devide each line item in the…

A: A traditional picture of a company's cash flow operations is provided by a common-size cash flow…

Q: cash inflows are greater than cash outflows, then there is a new ( INCREASE / DECREASE) in Cash.…

A: Cashflow represents the inflows and outflows of cash. When the cash flows into the business, there…

Q: Rate-based statistics (such as payback and discounted payback) represent summary cash flows, and…

A: a).  How much money was deposited and how much money was withdrawn before the trial period in the…

Q: there are 2 categories of cash flows: single cash flows, referred to as "lump sums," and annuities.…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: 59. Modified True or False T means Correct and F means Wrong Scenario: If you have a series of…

A: Cash flow is the inflow and outflow of cash in the business. It is real or virtual movement of money…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.