Explain the following terms: incremental cash flow, sunk cost,opportunity cost, externality, cannibalization, and complementaryproject.

Q: What is alternative cash flow measures?

A: Cash flow refers to the amount of cash that moves in and out of the business because of its…

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: Discuss Positive side effects and negative side effects cash flows? Provide examples. Explain the…

A: Solution- What is Cash flow-         Cash flows are internet the net of money and cash-equivalents…

Q: What is free cash flow (FCF)?

A: Free cash flow (FCF): It speaks to money a firm creates after accounting for cash outflows to back…

Q: Discuss the following components of break-even analysis: fixed costs, variable and semi-variable…

A: Break-even point: It is the point at which the contribution margin earned on sales is equal to fixed…

Q: Cashflow vs. net income: Which strategy is more appropriate?

A: instruction: The direct and indirect routes to a cash flow statement are both found there.

Q: Initial investmen Discount rate Net Profit 30,000,000 10% 12,937,000

A: Net Present Value (NPV) is a financial metric that measures the difference between the present value…

Q: If a company were filing a claim for compensation with an insurance company for manufacturi…

A: Replacement cost: Replacement cost means the cost which the firm would have to incur to replace or…

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: 1. Which of the following should be considered a current value measure? * a. Replacement cost and…

A: 1. Which of the following should be considered a current value measure? * c. Replacement cost, exit…

Q: Which of the following terms accurately describe what a resource is worth in its next- best use. a.…

A: In this question the factor which describes the best worth of resources is asked. We will analyse…

Q: is the difference between the gross present value of the benefits of that action and the amount of…

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

Q: hat is "free cash flow" and how is it different from net income? Which of the two componenets is…

A: Free cash flow is very important in valuation of the company and cash is very important for the…

Q: Match each of the terms below with its definition. 1. Sunk cost a. Additional costs incurred from a…

A: Costs: It may be classifed as sunk costs, opportunity costs etc. some kinds of costs are relevant…

Q: Explain the difference between return of investment versus return on investment.

A: The ratio analysis helps to analyze the financial statements of the business.

Q: In economics the circular flow model illisytates what

A: The circular flow model in economics is a simplified representation of how the economy functions. It…

Q: A machine cost P1,500,000 and will have a scrap value of P150,000 when retired at the end of 15…

A: Discount rate = 4.8%Salvage Value = 150,000Purchase Price (initial investment) = 1,500,000Life = 15…

Q: Calculate the present value and future value of an uneven cash flow stream.

A: A stream of cash flow is uneven  when all the amounts in the series of cash flows are unequal .i.e.,…

Q: What ROI will equate the PV of Inflows and the PV of outflows? a. Internal rate of return (IRR) b.…

A: Option b is incorrect because cost of capital means the cost that is incurred by the organization on…

Q: Explain how sunk costs and cannibalisation affect the determination of an investment’s incremental…

A: Introduction : . Simply put, sunk costs refers to the costs that has already been incurred and the…

Q: Give an example of the Cash-Flow Approach?

A: A cash flow hedge is defined as the transaction done to offset the risks from the variability of the…

Q: Which of the following would decrease free cash flow? O A. year-over-year reductions in inventory B.…

A: Cash flow is the cash inflow and cash outflow in an organization. Cash flow statement consists of…