In the evaluation of cash flows in a capital budgeting decision , which of the following must be considered? I. The size of the cash flow II. The timing of the cash flow III. The risk of the cash flow a. I only b. I and II only c. II only d. II and III only e. I, II and III

Q: List out the evaluation techniques used in capital budgeting. According to you which technique is…

A: Capital Budgeting:- Capital budgeting is a process of examine various investment opportunities for a…

Q: Which capital investment methods require the use of a present value table?

A: Net Present Value: It is a measure of profitability for a project used primarily in capital…

Q: Explain what net operating working capital is, and explain how changes in that quantity can affect…

A: Net operating working capital is defined as excess of current operating assets over current…

Q: What are the four types of cash flows MOST common in a capital budgeting valuation? Group of answer…

A: The four types of cash flows most common in a capital budgeting valuation are:A) Capital…

Q: Cash flow analysis is based on the [A] capital [B] fixed assets [C] cash concept of funds [D]…

A: Asset:   It refers to the resources owned by the business in both tangible and intangible forms.

Q: The importance of cash flow management when evaluating proposals for capital expenditure?

A: All investments in capital assets are expected to earn a return, which is evaluated by comparing the…

Q: Question 2: What factors should you keep in our mind as a financial manager when selecting methods…

A: The factors to be kept in mind when selecting the method of capital budgeting are -

Q: Which of the following are major cash flow components in capital budgeting?   Question 8 options:…

A: Capital budgeting involves cash inflows and huge amounts of initial investment.Capital budget…

Q: Which of the following is a capital budgeting method? A. net present value B. inventory turnover…

A: Please find the answer to the above question below:

Q: Generally, which of the following measurements is considered the best single criterion in capital…

A: Capital Budgeting is a financial technique which is used for evaluation of project whether it is…

Q: chance that a cash flow will turn out to be worse than the estimate. b. the chance that a…

A: Step 1 The planning process used to assess whether an entity's long-term investment is appropriate…

Q: Describe the process of developing cash flows for a project?

A: The project cash flow is required for the computation of NPV which further helps in analyzing the…

Q: How is a profitability index figured as it relates to capital budgeting and annuities?

A: Capital Budgeting is a decision making process. With different investment options available, the…

Q: Source and deployment of funds concerned with 1)Ratio analysis 2)Risk analysis 3)cash flow…

A: cashflow is a financial statement that is related to cash inflow and cash outflow of the company.

Q: Suppose an investment has conventional cash flows with positive NPv. How would it impact your…

A: NPV is the net present value of a project. When the net present value of a project is positive in…

Q: 1.  Of all the methods for evaluating the data (techniques of capital budgeting), which one do you…

A: The capital budgeting is the selection of the best projects and optimal projects based on the…

Q: We discussed the use of sensitivity analysis and simulation analysis in the context of estimating…

A: Cash flow can be inwards or outwards. Cash flow includes the fallow of cash only, it does not…

Q: Which of the following is not a method for incorporating risk analysis into capital budgeting?   a.…

A: Capital budgeting is a process of evaluating various investment proposals. The various capital…

Q: When making a capital budgeting decision, which of the following are NOT relevant? The size of a…

A: A capital budgeting decision is a long-term decision involving the selection or rejection of a…

Q: Which of the following methods of capital budgeting indicates the time period required to recover…

A: Capital budgeting is a process of identifying high return project or projects which will increase…

Q: 1. What is the payback period? Find the paybacks for Projects L and S. 2. What is the rationale for…

A: Hey, since there are multiple subpart questions posted, we will answer the first three subpart…

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: What is the process of Developing Project Cash Flow Statements?

A: The cash flow statement for the Project is required to keep check the on cash incoming and cash…

Q: Why is risk incorporated into capital budgeting and how is it incorporated into the process of…

A: Capital budgeting is the process of evaluating different investment projects that require capital…

Q: Why are discounted cash flow methods of making capital budgeting decisions superior to allother…

A: Discounted cash flow: it is a valuation method. This method helps in determining the Value of a…

Q: Which capital budgeting technique measures all expected future cash inflows and outflows as if they…

A: Based on the cost of capital the net present value method discounts the future cash flows (both cash…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.