Breakeven cash inflow refers to ________.   the minimum level of cash inflow necessary for a project to be acceptable, that is, NPV greater than or equal to zero   the minimum level of cash inflow necessary for a project to be acceptable, that is, IRR less than zero cost of capital   the minimum level of cash inflow necessary for a project to be acceptable, that is, IRR equals zero   the minimum level of cash inflow necessary for a project to be acceptable, that is, NPV less than zero

Q: Assume that both Projects A and B have normal cash flows, with one outflow followed by a series of…

A: IRR(Internal ROR) is the rate at which NPV(Net Present Value) of a project is zero. At IRR, PV of…

Q: A project's IRR: A) All of these answers are correct. B is the average rate of return necessary to…

A: IRR is the rate that would result in net present value of future cash flows equal to exactly Zero.

Q: 1) The internal rate of return (IRR) method assumes that project cash flows are reinvested at rate,…

A: Since you have asked multiple question , we will solve the first question for you. If you want any…

Q: which of the following statement is true>? 1. return on equity is the ratio of total assets to…

A: Capital budgeting is a way to evaluate profitability of new projects or investment by using various…

Q: Which of the following cash flows should not be considered when evaluating a project? Changes in…

A: Following cashflows should not be considered when evaluating a project-

Q: Define each of the following terms: f. Nonnormal cash flow projects; normal cash flow projects;…

A: Non-normal cash flow projects: This is otherwise called an unconventional cash flow venture that…

Q: Describe how NPV is calculated and describe the information this measure provides about a sequence…

A: NPV net present value is very important factor in deciding the feasibility analysis of projects. It…

Q: What is nonnormal cash flow projects?

A: Introduction:   Cash flow is the cash or cash equivalent transferred from in and out of business.

Q: The Modified Internal Rate of Return (MIRR) is based on : Reinvestment rate, financing rate, and the…

A: MIRR is a discounting rate that compares the present value of future cash inflows to zero year…

Q: The waterfall structure implies that during the construction phase of the project gross operating…

A: Waterfall structure is a process in which money is distributed in a fund. It indicates that until…

Q: A rate of return is... O A. the return which is required for an investment O B. the current worth of…

A: Solution:- Rate of return means the rate at which the investor wants the return.

Q: What refers to the interest rate at which the present work of the cash flow on a project is zero of…

A: The RoR can be used with any asset that was purchased at some point in the past and will provide…

Q: . If a capital budgeting project’s cash flows are not normal, the internal rate of return (IRR)…

A: SOLUTION- INTERNAL RATE OF RETURN- IT IS A DISCOUNT RATE THAT MAKES THE NET PRESENT VALUE OF ALL…

Q: How many of the following investment criteria always use all of a project's cash flows in their…

A: Capital budgeting techniques are used to determine whether the projects undertaken are profitable to…

Q: Which one of the following statements is correct?

A: If the internal rate of return equals the required return, the net present value will equal zero.

Q: Which of the following statements is most CORRECT? A. Some projects with normal cash flows have…

A: In the field of finance and capital budgeting, various methods are used to evaluate investment…

Q: comfirm these true statement  1)As your cashflow increases your DOL will decrease 2)with cash break…

A: Question 1: DOL measures the sensitivity of EBIT to changes in sales.Higher cash flow typically…

Q: If net present value for a project is negative, then____. a. IRR is equal to Cost of capital b. IRR…

A: Net present value is the difference between the present value of cashflows discounted at the cost of…

Q: In capital budgeting, a project is accepted only if the internal rate of return equals or: a.…

A: Internal rate of return is often used to determine the financial feasibility of an investment…

Q: True or False  A project will have multiple internal rates of return if its future net cash flows…

A: Internal rate of return (IRR) is the annual rate of return which is anticipated from the cash flows.…

Q: 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from…

A: MIRR refers to modified internal rate of return. There are some inherent shortcomings of IRR and…

Q: When evaluating a potential capital budgeting decision, fixed asset expenditures O should be…

A: Capital budgeting is financial technique which helps in decision making on the basis of future cash…

Q: Question 1   Which one of the following statements is NOT correct?     Group of answer choices   If…

A: Capital budgeting is a technique to estimate the profitability of the projects. There are various…

Q: Depending on the cash flow assumption, should the project must use continuous cash flow? why?

A: In continuous discounting and continuous cash flows, the assumption is that the cash stream happens…

Q: 20. Which of the following statement is CORRECT? Assume that the project being considered has normal…

A: The question pertains to the capital budgeting tool of IRR. IRR is the internal rate of return. It…

Q: For a typical project evaluation with initial investment at time=0 and positive cash flows…

A: Net Present Value is used to analyze the profitability of a projected investment and it is defined…

Q: Which of the following should you focus when assessing the NPV of a project for a MNC? I.…

A: Net Present Value (NPV) is the technique of capital budgeting which defines the profitability of the…

Q: The Modified IRR method is   a. Exactly the same as the IRR.   b. A better measure than the NPV.…

A: IRR is the rate at which NPV of the project is zero

Q: The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate…

A: MIRR refers to modified internal rate of return. MIRR, as a capital budgeting tool, seeks to remove…

Q: . If NPV is negative, company usually rejects the project. While, if ARR is greater than cost of…

A: Capital budgeting comes under the domain of corporate finance. The accounting and finance principal…

Q: A project can have as many different internal rates of return as it has: O changes in the sign of…

A: The internal rate of return (IRR) is used to measure the profitability of investments. It is the…

Q: A project's present value can be decreased by, I. decreasing the required discount rate (required…

A: There are various reasons for decreasing the present value of the project some of them are as…

Q: The net present value is ... O A. The return which is required for an investment OB. The current…

A: Capital budgeting The process that takes decisions related to investing for the long term is known…

Q: Can replacement chain analysis be used if project cash flows are different each time the project is…

A: Several statements have been given regarding the suitability of replacement chain analysis,  if…

Q: Multiple IRRs arise when considering projects with normal cash flows with positive NPV with negative…

A: Multiple IRR means as cash flows of project change more than once, there will be multiple IRR. It…

Q: At the ________ break-even point, a project’s net income equals exactly zero. a. cash b. operational…

A: In this question, we are required to fill in the blank.

Q: 1.True or flase . Even thugh thr amounts and timing of the cash flow may differ, the appropiate LCM…

A: ''Since you have asked for multiple question, we will solve the first question for you. If you want…

Q: A project does not necessarily have a unique IRR.(Refer to the previous problem for more…

A: year cashflow 1 20 2 82 3 60 4 2 IRR #NUM! excel formula: There is no unique IRR.

Q: A decrease in accounts payable constitutes a/an _________ in net working capital and is considered…

A: Working capital is the difference between the current assets and current liabilities.

Q: The internal rate of return is the: discount rate that makes present value of cash inflows equal to…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: Which of the following statements is most FALSE? A. If a project with normal cash flows has a…

A: Internal rate of return or IRR is an important concept. It is used to compare the cost of capital to…

Q: entify if each of the following would be included or excluded in forecasting cash flows for a…

A: When forecasting future cash flows only those cash flows, which will incur in future [ incremental ]…

Q: In which of the following cases is IRR unreliable? I. When looking at mutually exclusive projects…

A: IRR: IRR is the Internal rate of return of the project, where the NPV of the project is Zero.

Q: The payback period is a non - discounted cash flow technique that measures: a. The time required to…

A: The payback period is a financial metric used to evaluate the time it takes for an investment to…

Q: The AW of a project can be estimated by reducing all cash flows including the capital investment,…

A: Annual worth is the equivalent annual value for the cash flows for the given investment project.

Q: I. If there is a positive NPV, IRR is higher than the cost of capital. II. If annual net cash…

A: Net present value is the difference between the present value of cash inflows and present value of…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.