The present value of cash flows in Investment A is lower than the present value of cash flows in Investment B. O C. The present value of cash flows in Investment A is higher than the present value of cash flows in Investment B. O D. No comparison can be made-we need to know the cash flows to calculate the 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: Relevant cash inflows and outflows in a discounted cash flow analysis are the differences in…

A: True

Q: Describe term net asset value (NAV)?

A: Net asset value (NAV): It describes an entity's net worth, which is measured as the complete value…

Q: Assuming that we are not able to accurately predict cash flows , generally decreased risk is thought…

A: Cash flow at risk at risk tells us how changes in market factors can change the future cash flows.…

Q: Consider the following two projects: Year 0 Cash Flow - 100 - 73 Project A B 22.7 45.3 18.1 Year 1…

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: What are the two drawbacks associated with the payback period a. The time value of money is…

A: Payback period is one of the capital budgeting techniques which represent the time or years cash…

Q: 1. In discounted cash flows method, the value of investment opportunities is highly dependent on the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Why is the predictability of cash flow so important?

A: Cashflow is defined as the movement of cash into and outside the business in order to facilitate the…

Q: Which of the following statements is correct? The NPV method assumes that cash flows will be…

A: Solution:- Net Present Value (NPV) means the net of the present value of cash inflows and initial…

Q: do liquid assets frequently have lower rates of return than fixed assets?

A: Liquid assets are the cash or cash equivalents which can be drained out frequently whereas fixed…

Q: Which of the following is not an approach to replacement analysis? Solve, a. Cash flow approach b.…

A: Replacement analysis is the study of organizing, reasoning and implementation of successful…

Q: Which one of the following could be considered as an advantage of using the payback method of…

A: Solution: Payback period represents that period where the initial cost of the investment gets…

Q: Actual cash value is defined as Replacement cost Coinsurance amount Insurable value Depreciated…

A: Actual Cash Value (ACV) is a method of valuing insured property of business. It is not equal to…

Q: echnical problems associated with the internal rate of return include:

A: IRR (Internal Rate of Return): It is the rate of return that makes the net present value of the…

Q: One of the shortcoming of the payback method is that it ignores cash flows after the payback period.…

A: Payback method has serious disadvantages like it Ignores the time value of money.

Q: Question 2   Which one of the following methods of analysis could completely ignore some cash flows?…

A: Capital Budgeting involves various techniques which are used to evaluate different proposals to make…

Q: Why is the free cash flow valuation model so widely used?

A: With the free cash flow of the firm, administrators will focus on potential businesses that increase…

Q: Consider the following statements concerning the payback method of investment appraisal. 1. It…

A: The payback method of investment appraisal is a simple technique that calculates the amount of time…

Q: I need answer

A: a. APV (Adjusted Present Value): This method values the project as if it were all-equity financed…

Q: Which of the following is an advantage of the cash payback method? a. takes into consideration…

A: The objective of the question is to identify the advantage of the cash payback method among the…

Q: The ___ the expected return from a financial asset, the ____ the risk of not getting the money back…

A: Expected Return of Financial Asset:It is the expected profit or loss that is earned from the…

Q: Loss on disposal of a non-current asset is a cash outflow. Select one: True False

A: The correct answer is FALSE.

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.