Lowering the discount rate on a cash flow will its present value.

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 free cash flow (FCF)?

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

Q: How do youcalculate present and future value cash flows from various time periods using single and…

A: Capital budgeting tools are used to make a decision on how much capital should be invested in a…

Q: what are usefulness and weakness of discounted cash flow method?

A: Discounted Cashflow Method is the Method in which we compare Initial Project cost with expected…

Q: Explain Payment Caps and Negative Amortization?

A: Payment Caps: A payment cap is a customer protection that bounds the amount that your monthly…

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: 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: True/false   Under IFRS, the discount rate should reflect risks for which future cash flow…

A: False  Refer step 2 for explanation

Q: What are net operating loss carryforwards and how can they provide cash savings?

A:

Q: Give some examples of Discounted cash flow?

A: Discounted cash flow: It's a time value method to calculate the project or investment value  using…

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: time value of money to general situations where compounding is induced by growth, inflation, or…

A: Time Value of Money is one of the most important concepts of finance when it comes to the…

Q: Determining the future value of one or more present day cash flows is known as​ ________.   A.…

A: Future value is known as value in the future of present cash flows

Q: Explain CECL (“Current Expected Credit Loss”) model.

A:

Q: How are incremental cash flows found in a replacement analysis?

A: The choice to substitute an existing asset with another is defined as the net current and internal…

Q: What do we call the process of finding future value? Discounting Compounding Discount interest…

A: This is based on the concept of time value of money.   Amount put aside today or invested today…

Q: What is irregular cash flow stream?

A: Cash Flow has a flow concept. There can either be cash inflow or cash outflow. Generally, for…

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: What is the process of solving a cash flow for an unknown interest rate?

A: Time Value of Money: According to the concept of TVM, the company always interested to know the PV…

Q: The pure time value of money is known as the:   Multiple Choice   liquidity effect.   inflation…

A: The pure time value of money is the concept that money available today is worth more than the same…

Q: Discuss the limitations of the traditional discounted cash flow (DCF) analysis

A: Discounted cash flow determines the present value of the future cash flow of the company. It is…