To determine a benchmark yield a. Calculate after tax cashflows with financing b. Calculates before tax with financing c. Calculate an unleveraged yield without taxes and financing d. Calculate an unleveraged yield with taxes In performing a cashflow analysis estimating a. Yield before tax yield is important b. Yield after tax is important c. Effective Tax rate is important d. All the above The Alternative Cash Sale Work Sheet calculates a. Adjusted Basis b. Capital Gain c. Recapture tax d. All of the above

To determine a benchmark yield a. Calculate after tax cashflows with financing b. Calculates before tax with financing c. Calculate an unleveraged yield without taxes and financing d. Calculate an unleveraged yield with taxes In performing a cashflow analysis estimating a. Yield before tax yield is important b. Yield after tax is important c. Effective Tax rate is important d. All the above The Alternative Cash Sale Work Sheet calculates a. Adjusted Basis b. Capital Gain c. Recapture tax d. All of the above

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...

See similar textbooks

Similar questions

The before-tax and loan cash flows for an economic evaluation are expressed in constant dollars. What must be done to loan and depreciation cash flows in order to correctly conduct an after-tax present worth analysis with borrowed capital? I. Convert the loan principal payments to constant dollar II. Convert the loan interest payments to constant dollar III. Convert the MACRS depreciation allowances to constant dollar a. I and II only b. II and III only c. I, II, and III d. No conversions are required.
The formula for calculating an after-tax cash inflow is: Select one: O O O O A. Pre-tax cash inflow / (1 - tax rate) B. Pre-tax cash inflow / (tax rate - 1) C. Pre-tax cash inflow x (1 - tax rate) D. Pre-tax cash inflow x (tax rate - 1) E. None of the above
In the discounted cash flow (DCF) method, which of the following is the correct formula for calculating Unlevered Free Cash Flows (UFCF)? A)EBIT (1-tax rate) + Depreciation and Amortization (D&A) + Investment in Net Working Capital (\Delta NWC) + Capital Expenditure (CapEx) B)EBIT (1-tax rate) – D&A – \Delta NWC – CapEx C)EBIT (1-tax rate) + D&A – \Delta NWC + CapEx D)EBIT (1-tax rate) + D&A – \Delta NWC – CapEx E)EBIT (1-tax rate) – D&A + \Delta NWC + CapEx
Match each of the following term with the corresponding description. Not all descriptions will be used._____ Operating activities_____ Indirect method_____ Cash equivalent_____ Investing activities_____ Direct method_____ Financing activitiesA. Measures the percent of net income that comes from high-margin products.B. Includes such events as the receipt of dividends and interest on investment assets.C. Includes assets that are very liquid and have original maturities of three months or less.D. The percent of total debt represented by a company's cash account.E. These activities include only purchases made with borrowed funds.F. Where cash flows from operating activities are calculated by converting each revenue and expense item from an accrual to a cash basis.G. This ratio multiplies net income by the average rate of interest the company receives on its investments.H. This ratio uses net income instead of operating cash flow to Analysis a company's ability to finance the cost of its…
.....is the after tax cash flow generated by a business minus the cost of the capital it has deployed to generate that cash flow a. Net Present Value (NPV) a. Ob Economic value added (EVA) Oc. Internal Rate of Return (IRR) d. Discounted Cash Flow
Please answer the question attached in the picture below
NOI is important because you calculate your:a. Tax liabilityb. Value and financingC. Both a & bd. None of the above NPV is a greata. Way to determine if it is the IRRb. Analytical toolC. Negotiating toold. Determine leverage. Real estate is a:a. Cash flow businessb. An easy entry businessc. Risk for profit businessd. All of the above Points increasea. The lenders yieldb. Bowers cost of financingC. Both A & Bd. Monthly payments
Using your own words, briefly (hopefully) explain: (a). What is "retained earning"? How does after-tax cash flows differ, when purchasing with retained earning vs. with loan?
Please answer the following questions 1. _________________ is the discounted net future cash inflows divided by the initial cash outlay. a.Payback b.NRV c.Profitability Index d.IRR 2. __________________________ serves as a framework for measuring performance. a.NRV b.Payback c.Profitability Index d.Balanced Scorecard 3. Which of the following is a performance measures of the balanced scorecard: a.internal Business perspective b.all of the answers are correct c.financial Perspective d.customer perspective
Which of the following is an appropriate method of computing free cash fl ow to the fi rm? A . Add operating cash fl ows to capital expenditures and deduct after-tax interest payments.
REQUIRED: ANSWER THE FOLLOWING QUESTIONS IN POINT FORM • What is the difference between book value and market value? Which should we use for decision making purposes? • What is the difference between accounting income and cash flow? • What is the difference between average and marginal tax rates? • How do we determine a firm’s cash flows? • What is CCA? How is it calculated?
Comment on the following statements with suitable example: i. The ratio return on assets has net income in the numerator and total assets in the denominator. Explain how each part of the ratio could cause return on assets to fall. ii. Explain how return on assets could decline, given an increase in net profit margin. iii. If quoted market prices are not available, a personal financial statement cannot be prepared. Comment.