The internal rate of return (IRR) is The same thing as the cost of capital. The discount rate that equates the present values of cash inflows and cash outflows. The same thing as the net present value. The same thing as the profitability index.

Q: Which of the following method is not based on concept of time value of money? A. Discounted payback…

A: Time value of money is based on the concept, that money you have today worth more than it in the…

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: The internal rate of return (IRR) is The same thing as the cost of capital. The discount rate that…

A: IRR is the internal rate of return. It is the rate at which net present value is equal to zero.…

Q: Which one of the following methods is based on net profit rather than cash flows? a. net present…

A: We use capital budgeting to determine if a project is financially viable or not. We accept viable…

Q: Which one of the following is a measure of long term solvency? A. Price earning ratio B. Profit…

A: Solvency refers to a firm's ability to meet its long term financial obligations or debt.

Q: the discount rate that equates the present value of the cash inflows with the present value of the…

A: In capital budgeting decisions calculate net present value is very important.

Q: Nominal values are measured in ________ and real values take account of

A: Given  Nominal values are measured ? Real values taken account of?

Q: When calculating an i* value, all net positive cash flows are assumed to be reinvested at:a. the…

A: Cost of Capital: For financing operations, a firm can raise long term funds through a combination of…

Q: Which of the following is the correct definition for present value (PV)?

A: Present value is an important concept in finance which is based on the concept of time value of…

Q: In a cash flow series regarding the gradient: Select one: O a. Uniform gradient signifies that an…

A: When cash flows of a series changes with a constant amount, it is knows as gradient series.

Q: What is Internal Rate of Return - Monthly Fixed Cash Flows with Reversions?  Please provide…

A: The internal rate of return is the one of the discounted techniques of capital budgeting which is…

Q: Which one of the following is most closely related to the net present value profile? A: Payback B:…

A: The net present value method is used to evaluate the investment projects. We can evaluate the…

Q: Which of the following methods consider the time value of money? A. payback and accounting rate of…

A: Time Value of Money The time value of money is the concept that money you have now is worth more…

Q: Please answer the following questions 1. _________________ is the discounted net future cash…

A: Profitability Index= PV of cash inflows/Initial cash outlay where, PV= Present Value Balanced…

Q: Based on the interest rates and cash flows shown in the cash flow diagram, determine the value of…

A: Given information: Initial outflow : $50,000 Interest rates for 9 years Cash inflows  : x Cash…

Q: Define DCF (discounted cash flow) analysis

A: Discounting cashflow

Q: O discounting factor. O number of periods. O compounding factor. O interest rate. cash flow is…

A: Present value is the equivalent value of the future cash flow based on the time value of money and…

Q: Define the term the cumulative cash flow?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: In a cash flow series regarding the gradient: Select one: a. Uniform gradient signifies that an…

A: A series of cash flows may increase or decrease by an amount each period. Such a series of cash…

Q: yback method, the Accounting Rate of Return, and Discounted Cash Flow Model (Ne

A: Step 1 A huge budget is a method through which a company assesses possible substantial projects or…

Q: Based on the interest rates and cash flows shown in the cash flow diagram, determine the value of…

A: Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a…

Q: LAPORTE INC. Statement of Cash Flows (Partial) For the Year Ended December 31, 2020 Cash flows from…

A: Free Cash Flow (FCF) is the cash remaining for paying fixed or short-term obligations i.e. payment…

Q: The rate of return that equates the present value of cash inflows and outflows is the: A. hurdle…

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: te

A: Introduction : The given question relates to the capital budgeting techniques which are used to…

Q: The present value of an investment's future cash flows divided by its initial cost is the: O Net…

A: The present value of an investment is calculated by applying the time value of money concept to the…

Q: A centerpiece of any study of finance is "valuation." A simple function, "V=l/R," can be used to…

A: Valuation is the process of determining the present intrinsic value of an asset or a security.…

Q: NPV measures a. the change in firm value b. the profitability of an investment c. the change in…

A: Net Present Value (NPV) measures the current value of an investment by subtracting its initial cost…

Q: Define “incremental cash flow.”

A: An incremental cash flow is the additional operating cash flow that an organization receives from…

Q: The discounted payback method discounts cash flows at the opportunity cost of capital and then…

A: Cost of capital denotes that cost which a firm is required to pay to finance the amount for the…

Q: Investment at the end of year 2 3 4 5 6 7 Year Today 1 Cash Flow $100 +$200 +$300 +$400 +$500 +$600…

A: Initial investment (I) = $100 CF1 = $200 CF2 = $300 CF3 = $400 CF4 = $500 CF5 = $600 CF6 = $700 CF7…

Q: Which method does not consider the time value of money? Choose the correct. A. Net present value…

A: Net Present Value or NPV is a technique which determines the net present value of the project and it…

Q: Liquidity. The net profit / sales percentage measures which of the following? O Return on…

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

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.