Cash equivalents include short-term investments that will be converted to cash within 120 days. True Fals
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Cash equivalents include short-term investments that will be converted to cash within 120 days. True Fals
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- Value of a mixed stream For the mixed stream of cash flows shown in the following table, . determine the future value at the end of the final year if deposits are made into an account paying annual interest of 11%, assuming that no withdrawals are made during the period and that the deposits are made: a. At the end of each year. b. At the beginning of each year. a. The future value at the end of the final year if deposits are made at the end of each year is $. (Round to the nearest dollar)How do you take the present value of a stream of cash flows. How does it work for annual payments, weekly payments, quarterly payments, and monthly payments? Provide examples of eachThe following table indicates the net cash flows of a capital asset: Year Net Cash Flow 0 $-159,000 1 $59,000 2 $59,000 3 $59,000 4 $59,000 Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. Calculate the cash payback period using the formula method. Payback: Answer years
- The rate of return that equates the present value of cash inflows and outflows is the: A. hurdle rate.B. desired rate of return.C. internal rate of return. D. minimum rate of return.Determine Hopewell's cash conversion cycle. Assume that there are 365 days per year. Do not round intermediate calculations. Round your answer to one decimal place. daysWhat is the payback period for the following set of cash flows? Year Cash Flow -$ 0 3,600 1 2,800 2 2,100 3 2,900 4 2,800
- The FASB concepts statement relating to cash flow information introduces the concept of expected cash flows when using present values for accounting measurements. Assume that Smith Company determined that it has a 40% probability of receiving $10,000 one year from now and a 60% probability of receiving $10,000 two years from now. (Click here to access the PV and FV tables to use with this problem.) Required: Using the FASB concepts, calculate the present value of the expected cash flows assuming a 12% interest rate compounded annually. Round your answer to two decimal places. $Which of the following will shorten the cash cycle? Select one: A. An increase in the raw materials inventory holding period B. An increase in the production period C. An increase in the trade receivables days D. An increase in the trade payables daysConsider the following cash flows: Year Cash Flow 0123 $19,400 10,400 9,320 6,900 What is the IRR of the above set of cash flows? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return 96
- 2. For the below cash flows: (a) Determine the number of positive roots to the rate of return relation by performing Descarte's rule of signs and Norstrom's criterion tests. Year Cash Flow, $ -500,000 400,000 1 2.000.000 -1,500,000 2345Which of the following statements is CORRECT about amount financed? a. It is the sum of list price and down payment. b. It is the amount of money paid in advance for any commodity purchased in instalment plan. c. It is the difference between the cash price and the down payment. d. It is the sum of the total monthly payments and the down payment.An annuity is a series of cash flows over an indefinite period of time. True or False?