The Modified Internal Rate of Return (MIRR) is based on : Reinvestment rate, financing rate, and the number of periods Only the reinvestment rate of the project's cash flows Neither of the aforementioned variables Only the financing rate of the project's cash flows

Q: Which of the following is an advantage of using the payback period method for project selection?…

A: The objective of the question is to identify the advantage of using the payback period method for…

Q: A project's IRR: A) All of these answers are correct. B is the average rate of return necessary to…

A: IRR is the rate that would result in net present value of future cash flows equal to exactly Zero.

Q: Which of the following statements concerning the payback period, is not true? a. The payback period…

A: Solution:- Payback period is the time period at which the initial investment gets recovered from the…

Q: Define each of the following terms: f. Nonnormal cash flow projects; normal cash flow projects;…

A: Non-normal cash flow projects: This is otherwise called an unconventional cash flow venture that…

Q: Describe the project cash-flow analysis?

A: The question is based on the concept of  cash flow analysis of  a project.

Q: When considering a project’s Operating Cash Flows, where are Financing        Costs included?

A: Financing cost is the cost of the debt taken by the company which would be used for financing the…

Q: You are a manager at Percolated Fiber, which is considering expanding its operations. Your boss said…

A: Depreciation is a non cash expenses. So this expense should be added back to calculate the free cash…

Q: 1. Which of the following is not true? Group of answer choices The method in which we calculate a…

A: Capital Budgeting techniques and methods are used to measure and evaluate the potentiality of…

Q: What refers to the interest rate at which the present work of the cash flow on a project is zero of…

A: The RoR can be used with any asset that was purchased at some point in the past and will provide…

Q: The internal rate of return method assumes that a project's cash flows are reinvested at the:

A: The internal rate of return is a financial analysis tool that is used to estimate the profitability…

Q: This method solves for the interest rate that equates the equivalent worth of a project's cash…

A: Payback period -  Initial investment / Cash flow per year. It is the period taken to recover the…

Q: Depending on the cash flow assumption, should the project must use continuous cash flow? why?

A: In continuous discounting and continuous cash flows, the assumption is that the cash stream happens…

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: Which of the following projects have conventional cash-flow streams? Select all that are…

A: Solution:- Conventional cash flow stream is that cash flow stream in which the sign of cash flows…

Q: fe of the project. Which one of the following statements is correct with respect to this…

A: NPV Method assumes that all the cash flows are reinvested at the company's Cost of Capital. IRR…

Q: Illustrate the conventional payback period, annual project cash flow over the life of project, and…

A: The illustration is shown below:

Q: The payback period is a non - discounted cash flow technique that measures: a. The time required to…

A: The payback period is a financial metric used to evaluate the time it takes for an investment to…

Q: Which of the following is/are true for the average accounting return method of project analysis? I.…

A: Average Accounting Rate of return is used for capital budgeting decision for a project. The Average…

Q: The method that measures a projects return based on present values is the: Internal Rate of Return…

A: The current value of an investment based on the return, which will be received on a predefined…

Q: Mathematically, we can determine the rate of return for a given project’s cash flow series by…

A: When Cash Flows are discounted by using Internal Rate of Return for a period of cash flows held.…

Q: To calculate net present value of a project with normal cash flows, find the present value of the…

A: To calculate net present value of a project with normal cash flows, find the present value of the…

Q: For a normal project, profitability index is the ratio of: a. The net present value of the…

A: Profitability Index (PI), also known as the Profit Investment Ratio (PIR) or Benefit-Cost Ratio…

Q: State a method that translates a project's cash flows into an equivalent net present value?

A: Both investment and finance decisions are made with the primary purpose of increasing shareholder…

Q: How do we develop the project cash flows, after taxes, over the life of the project?

A: Cash flows of the project include both cash inflows and cash outflows. To develop cash flows…

Q: Which of the following statements is true regarding the payback period? Multiple Choice It measures…

A: The term payback period refers to the amount of time it takes to recover the cost of an investment.…

Q: The net present value (NPV) method of investment project analysis assumes that the project's cash…

A: In NPV analysis, project's cashflows are discounted at the present value using a relevant discount…

Q: What is the 'golden rule' for finding the Internal Rate of Return (IRR) of an investment project…

A: Solution:- Internal Rate of Return (IRR) is the rate of return earned by the firm from the project.…

Q: Which of the following statements is true about the internal rate of return?   a. It is the…

A: The internal rate of return is a financial measure used to measure the attractiveness of a…

Q: How can we determine the project cash flows over the project life?

A: Cash Flow Statement is a part of the Financial Statement of a company. It literally means a…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.